2 2 2
CNX-BANK NIFTY
Open—52793.75--High—52828.45--Low—51996.65---Close—52168.10 on
2.7.2024.
Support:51957/51823/51470/51133.20/50889.65/50467.77/50153.81/50122.13/49974.75/49688.85/49202/49057.40/48636.45/48381.95/48313.60/48292.25/48203.45.
Resistance: 52218/ 52508/52966/53064/53180.75/53281/54257/54604/54815.
OVERALL VIEW: --
It opened on a positive note but did not move much higher
after that and started moving down steadily and finally ended the day with a loss
of 406.65
points. The technical setup is still good but volatility is a concern and it could
drag it down sharply in coming days, furthermore it has made lower top &
bottom on the line chart, it fell below few short term moving averages after a
long time and it is also into corrective
mode for its recent rise as it has moved below some of its first key support
range point of 52698.87----52369----52341---52319.28---52192-----52032.10--=52019----51980
& 51957 (figures may change) on the closing basis, now break
below each point will deepen the correction further and sustained break below 51957 (it bounced back from close to this
point today) will be a warning sign and may trigger fresh fall. However
even if it breaks the above mentioned points, but moving down as long as it
holds the range of 51718.14----51624---51504.47-----51188-----51133.20----51115.34----50833(figures may change) the chance
of the up move will be alive but break below 51133.20 & 51115.34
could be a deep warning sign for a big down move to start and finally sustained
break below the range of 48636.45---48292.25 &48203.45 will trigger fresh fall and that
could be moderate to sharp in the intensity. It is important to mention here some
important technical indicators on the daily, weekly and monthly chart are still
weak and showing overbought condition also, which indicates that it may deeply
correct in the coming days/weeks, but please note that as long as price action
remains good there is no major threat for it to move down and the price action
has been more or less consistently o.k. recently but it is was mixed today and
was on the weaker side. In light
of vertical rise, some weak indicators, overbought condition, weak price action
and volatility, it is suggested to trade the market with extreme caution and
alert because it may fall in an accelerated pace in coming days. Since it is into correction mode it is sell
on the rise market till it get out of the corrective mode, but long trade can
also be attempted on decline at appropriate support points for intraday gains. It will get out of all corrective modes
if it closes above 52698.87.
NOTE: - TO KEEP THE UP MOMENTUM
GOING IN THE MONTH OF JULY-2024 IT HAS TO MOVE ABOVE 53180.75 AND SUSTAIN ON
THE CLOSING BASIS, ELSE IT MAY MOVE SIDE WAYS OR DRIFT DOWN. SIMILARLY SUSTAINED BREAK BELOW THE RANGE OF 52698.87----52319.28---52032.10 & 51957 MAY TRIGGER FRESH FALL.
STRENGTH:-
1. It is in
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 in
the new zone.
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 52369----52192----51986----51624---51188---50833(figure will change every day), sustained break below this range can trigger down
move again.
5. Four out
of seven important technical indicators are positive on the daily chart.
6. It still has
higher top & bottom on the line & bar chart.
WEAKNESS:-
1. The price
action was weak for the last 2 days and it was mixed today.
2. It
slipped into correction mode as it is below its threshold point of 52698.87
& 52319.28. The other important correction threshold points are at 52032.10---51718.14---51504.47---51115.34(figures
may change). Please note that break below each point will make the
correction deeper.
3. Some important
technical indicators are weak and overbought on the daily/weekly and monthly chart
and pointing that it could head down in the coming days/weeks and months.
4. 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 51996
with a stop loss of 51850, else avoid. For safe traders it is suggested
to avoid long trade till it closes above 52352 and sustain.
2. Short
trade can be tried on the rise near or within the range of 52575---52650 with
a stop loss of 52800 or can sell below 51960 with a stop loss of 52260.
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.
