CNX-NIFTY
Open-22027.95—High—22131.30—Low—21821.05--Close-22104.05
on 13.5.2024.
Support:21883/21875/21860/21777.65/21710.20/21530.20/21448.45/21137.20.
Resistance:22126.80/22224.35/22297/22305.25/22348.05/22526.60/22554.68/22568.40/22678.85/22730/22775.70/22783.35/22794.70.
It opened on a negative note
and went down further but bounced back from near its most critical support
point of 21777.65 and finally ended the day with a gain of 48.85 points. It is still into deep correction mode for
its recent rise. But the good point is that it closed above its pullback
threshold point of 22051 and if it sustains above it on the closing
basis then this rally can extend further, else down move may continue.
STRENGTH:-
1. It is in the long term uptrend now. But sustained break
below 21597(figure will change every day) will threaten the long term
uptrend.
2. The short range for it now is between 22794.70---22305.25(it
is below this range now) and the long range is between 22794.70----21777.65.
3. It is well above its critical points of 21801.45---21777.65---21731.40---21727.75
& 21710.20, which is must to keep the up momentum going in the year 2024.
4. Today it closed above its pullback threshold point
of 22051(figure may change) and if it sustains above it on the closing
basis then the rally can extend and the possible upside target or resistance
points could be at 22126.80---22193---22308----22423---22526.60---22565---22600.
5. Moving down the possible good bounce back support point
could be at 22051----22018---21981---21860----21777.65----21710.20, but
sustained break below 21981 can pull it down to 21777.65 & 21710.20 levels and
finally sustained break below these points could be a warning sign and can drag
it down to devastatingly lower levels in coming days and may make the on-going
correction more painful time wise and value wise both, which may please be
noted. So 21777.65 & 21710.20 is a very strong and may be the last bounce
back support points as of now or make or break point or benchmark points. So be
watchful.
WEAKNESS:-
1. It is into correction mode now.
2. It is below its key point of 22126.80 and the
up momentum threshold point of 22526.60.
3. It is below all its short term moving averages on
the daily chart and some below the weekly chart also and the important range of
averages is between 22354---22336---22323---22313 (figures will
change every day), sustained close above this range may provide good strength
and an impetus to move up.
4. It is below some of its medium term moving averages
on the daily chart.
5. It has broken its recent bottom on the line and bar
chart.
6. Technical indicators are weak on the daily/weekly
and monthly charts and pointing that it could head down to much lower levels in
coming days/weeks and months.
7. The price action has been more or less consistently
weak for the last few days.
OVERALL VIEW:-- The overall technical setup is weak as of now;
therefore further fall looks inevitable in coming days but today’s up move can
extend if it sustains its pullback threshold point of 22051 on the
closing basis. But it is in correction mode therefore it is sell on the rise
market now or sell on the price breakdown. So safe traders can try long trade if it holds
22051 on the closing basis, else avoid. But aggressive traders can try
long trade on decline at important support points or range for pullback gains.
The long term trend is still up, but the short term bias is negative as of now.
Please note that today’s move was positive.
TRADING CALL: --
1. Aggressive traders can try long trade on
decline near 22051 if it hold it for some time with a stop loss of 22000
or if it moves above 22132 and maintain for some time with a stop loss
of 22070 or on the sharp decline near or within the range of 21821---21777.65 with
a stop loss of 21690.
2. Short trade can be tried on the rise near or
within the range of 22270--- 22310 with a stop loss of 22360 or can
sell if it moves below 21930 with a stop loss of 22030. It could
be a risky trade but can be tried 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
