2 2 2
CNX-BANK NIFTY
Open—52533.10--High—52710.80--Low—52246.70---Close—52425.80 on
8.7.2024.
Support:52351.15/52342.25/51996.65/51957/51138.90/51133.20/50252.95/49974.75/49530.45/49057.40/48636.45/48313.60/48292.25/48203.45/48161.75/47435.75/46983.75/46579/46077.85.
Resistance:53180.75/53357.70/53477/53503/53575/53633/53773/53913/53970/54070/54139/54257/54365/54604/54815/55097.
OVERALL VIEW: --
It opened on a negative note and thereafter had both side
moves during the day and finally ended the day with a loss of 234.55
points. The chart setup is still good but the volatility and overbought
condition is still a concern, furthermore now it is already into short
correction mode for its recent rise as it is way below its threshold point of 53036.49 and also below some other important
points of 52834.06---52667, most of the important technical
indicators have turned negative today, so all together it is showing weakness or fatigue and pointing that it could
head down in coming days, please note that it is down now but not out as chart
setup is still not bad, chart setup will turn bad below 51996.65 & 51957. Therefore
if it manages to hold its balance first key support range points of 52454.47----52412-----52268.86----52238---52167.20-----51996.65
& 51957 (figures may change) on the closing basis then it
could stage a bounce back from any of
these points and may resume the up move again, but sustained break below 51996.65 & 51957 may accelerate the
fall. It is important to mention here
that even if it breaks the above
mentioned range, but moving down as long as it holds its last critical range of
51853.33---51716-----51643----51639.66-----51351.15----51342.25-----51250.53-----51133.20(figures may change) the chance of the up move will still be alive but sustained
break below 51643 will signal that a big fall may be in the offing,
break below 51351.15 & 51342.25 will confirm the fall and sustained
break below 51133.20 may accelerate the fall and finally sustained break
below the range of 48636.45---48351---48292.25 &48203.45 will trigger fresh fall and it could
be moderate to sharp in the intensity and will threaten the long term uptrend
also. It is important to mention here that most of the important technical
indicators on the daily chart has turned weak today, and some indicators on the
weekly and monthly chart are already weak and showing overbought condition,
which indicates that it may deeply correct and may head for 51661 or much lower levels in the
coming days/week/months, 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 was weak
today, so keep an eye on the price action for further direction. Since it gotten into correction mode
today it is sell on the rise market in general but both side trade can be tried
depending on the price action for intraday gains.
NOTE: - TO KEEP THE UP MOMENTUM
GOING-ON 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. SUSTAINED BREAK
BELOW 51996.65 & 51957 MAY ACCELERATE THE 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 average range for today is between 52667----52665----52412----52238---51716---51643(figure will change every day), sustained break below this range can trigger down
move. It is below few averages now.
5. Two out
of seven important technical indicators are positive on the daily chart.
6. It still has
higher top & bottom on the line and bar chart.
WEAKNESS:-
1. The price
action was weak today.
2. It slipped
into correction mode today as it closed below its threshold point of 53036.49---52834.06
& 52454.47, the other important correction threshold points are at
52167.29---51853.33----51639.66----51250.53(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
and wild swing 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.
5. Five out
of seven important indicators have turned negative today.
TRADING CALL: --
1. Long trade can be tried on decline near 52000
with a stop loss of 51900, else avoid. Please note that long trade in a
corrective market could be a risky affair.
2. Short
trade can be tried on the rise near or within the range of 52700---52750 with
a stop loss of 52850 or can sell if it maintains below 52300 with
a stop loss of 52550. 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.
