CNX-NIFTY
Open-22765.10-High—22768.40—Low—22612.25--Close-226
42.75 on 9.4.2024.
Support: 22623/22529.95/22526.60/22525.65/22516/22452.55/22440.90/22297.50/22234.35/22180.70/22126.80/22124.15/21905.65/ 21883.30/21875.25/21860.65/21834.35/21801.45/21763.95/21750.25/ 21731.40/21727.75/21710.20/ 21593/21530.20/21500.35/ 21448.65/21285.55/21137.20/20976.80/20769.50/20507.75/20291.53/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.
Resistance: 22730/22787/22800/22838/22870/22935/23072/23117/23139/23344.
(Bold
and underlined figures are most important)
It opened with an up gap
and went up further and hit a new all-time high of 22768.40 and filled
the today’s gap during the day and finally ended the day with a loss of 23.55 points. It is showing good strength and well above its
critical point of 22526.60, which is a good sign and if it sustains
above it then the up move is likely to continue. But the gap it created on
8.4.2024 is still there and if it makes an effort to fill the gap in
next 3-4 trading sessions, which is technically possible then it can
come down to 22537. But if it fails to fill the gap in the stipulated
time then chances of filling the gap will recede. The volatility is continuing
which is not a good sign for a steady market and eventually it can drag it down
in coming days/weeks & months, however as long as price action and other
parameters supports it may continue to move up but fear of moving down may
haunt at times because of the volatility, which please keep in mind. It is important to mention here that the gap
filling threat for earlier gap on the daily & weekly chart has faded out
but please note that eventually it will fill the gap someday(weekly gap of
20291.55 is yet to be filled), which please note.
Moving up from here the important resistance points could be at 22658.75---22730----22787----22800---22838----22870, it may correct at
any of these points and may resume the up move again or may exhaust the up move
for a while and move sideways.
Similarly moving down from here the broad important
support points could be at 22526.60---22518.66----22383.44----22363.52-----22333---22325----22303.80---22297.50----22290---22239----22224.35-----22126.80----22105----21902.87---21883.30----21871.36----21860---21840.47----21801.45----21731.40----21727.75-----21710.20(figures
may change), and for in between and other support points
please refer the support table at the top, it may bounce back from any of these
points and may resume the up move again. Please note that today it gotten into
very short correction mode for its recent rise as it closed below its threshold
point of 22658.75. Break below 22526.60 will weaken the up momentum, break below 22518.66
may deepen the correction, sustained break below the range of 22333---22239
and then below 22126.80 may trigger fresh
fall, however as long as it holds
21902.87 on the closing basis chances of continuation of the up move will be
alive, break below the range of 21801.45—21786.47---21731.40----21727.75---21710.20
may jeopardize the up momentum for the year 2024. The most crucial support
point is 21710.20 and sustained break below it may accelerate the fall.
It is important to mention here all the five
important technical indicators are positive now on the daily chart, which is a
positive sign and indicates further upside may be ahead. But three important
indicators on the weekly and one indicators on the monthly chart is negative
pointing that it could head down in coming weeks/months, but the weekly
indicators have improved from the previous week which is good sign, but ,volatility
& some weak weekly & monthly indicator is a concern. However, on the
other parameters it looks good such as moving average placement, making higher
top & bottom and price action has been consistently good and positive, therefore
if the other parameters remain good the up move is likely to continue with intermittent
correction. But I once again repeat that some weekly & monthly indicators
speak otherwise at this point of time, so ride the on-going rise with caution
and alert. It is in the long-term uptrend; therefore it is buying on decline
market now.
TRADING TIPS: --
1. Long trade can be tried on decline near or within
the range of 22580---22530 with a stop loss of 22490 or can buy if it moves above 22681 and
maintain for some time with a stop-loss of 22605.
2. It is in the long term uptrend therefore short
trade in general could be a highly risky affair; but even then short trade can
be attempted on reasonable rise or on price breakdown for intraday corrective
gains but with extreme caution and alert. Short trade can be tried on the rise
near or within the range of 22770--- 22800 with a stop loss of 22860.
It could be a risky trade but worth trying for intraday corrective gains.
NOTE: - If it opens up with huge gap up then wait for
it to settle down before initiating long position, but short trade can be
attempted on huge gap up if it is near the selling point and vice versa .
Since, it is showing volatility so any type of trade should be squared off
during the day, if you don’t have reasonable profit margin in the trade. Day
squaring off is strongly suggested in any case.
Disclaimer:-The view expressed here are solely of the author
and he is not at all responsible in any way for the outcome of the trade you
enter based on the above view.
Kindly note that make your cost your stop loss in favorable trade and then trail it as the
price move up/down to gain maximum profit and avoid losses. Use support and
resistance levels as entry, exit, target and trailing stop loss points. DO
NOT TRADE WITHOUT STOP LOSS.
Note: Price stated here are of spot market.
Thanks
Narendra
Kumar Surana
Mobile—8240951127/9831313654.
Email--- suranank@gmail.com
