2 2 2
CNX-BANK NIFTY
Open—50194.35--High—50562.15--Low—49900.20---Close—50440.90 on
18.6.2024.
Support:50153.81/50122.13/49974.75/49688.85/49202/49057.40/48636.45/48381.95/48313.60/48292.25/48203.45/47435.25/47340.35/46983.25/46579.05/45828.80/45661.75/44633.55/44429.
Resistance:50467.77/50889.65/51133.20/51470/51823/51969/52218/52966.
OVERALL VIEW: --
It opened on a positive note and thereafter had both
side moves and finally ended the day with a gain of 438.90 points. It finally closed
above its key point of 50122.13
please note that if it sustains above it on the closing basis then it could
retest its all-time high of 51133.20
or may go beyond it also, else it may start to drift down. Furthermore despite
the recent rise some important technical indicators on the daily, weekly and
monthly chart are still negative, which indicates that it may fall in coming
days/weeks, but as long as price action remains good there is no major threat
for it to move down. However even if it moves
down but as long as it holds the range of 49849---49721---49504---49474---49314---49194(figures
will change every day) the chance of the up move will be alive but break below this range could be
a warning sign for down move to start and finally sustained break below the
range of 48636.45---48292.25
&48203.45 will trigger
fresh fall and it could be moderate to sharp in the intensity. Since it is still in corrective mode therefore
it is sell on the rise market now in general, but long trade can also be
attempted on decline at crucial and critical support point with strict stop
losses for pullback gains.
NOTE: - IF IT SUSTAINS ABOVE 50122.13 ON THE
CLOSING BASIS THEN IT COULD RETEST ITS ALL-TIME HIGH OF 51133.20 OR MAY GO
BEYOND IT ALSO, ELSE IT MAY DRIFT DOWN.
STRENGTH:-
1. It is in
the long term uptrend; but break below 47612(figure will change every day)
will threaten the long term uptrend.
2. It is well
above its most critical points of 48203.45---48292.25 & 48636.45, please note that it must stay above all these
points to keep up the strong up momentum going in the year 2024.
3. It is
well above its pullback threshold point of 47271(figure may change), and
if it sustains above it then the possible broad upside target points could be
at 50467.77.
4. It is
above all its short, medium and long term moving averages on the daily and
weekly chart, and the important range for now is between 49849---49721---49504---49474---49314---49194(figure
will change every day), sustained break below this range can trigger down
move again.
5. Three out
of five important technical indicators are positive on the daily chart.
6. It has
made higher top & bottom on the line chart recently.
7. The price
action was positive today
WEAKNESS:-
1. It is into
deep correction mode for its earlier and its recent rise and it will get
out of all corrective modes once it moves above 50467.77 and sustain on the closing basis.
2. Some
important technical indicators are weak on the daily/weekly and monthly charts
and pointing that it could head down to lower levels in coming days/weeks and
months.
3. Volatility
can be seen in the market quite often, which is not a good sign for a steady
market condition and it can eventually drag it down may be drastically in the coming
days/weeks and months. So be watchful. .
TRADING CALL: --
1. Long trade can be tried on decline near
or within the range of 50250---50122 with a stop loss of 49800
for pullback gains, else avoid trade for the day.
2. Short
trade can be tried on the rise near or within the range of 50950---51050 with
a stop loss of 51200 or can sell below 49800 with a stop loss of 50050.
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
Email—suranank@gmail.com
Mobile—8240951127/9831313654.
