CNX-NIFTY
Open-24320.05--High-24472.80—Low24212.10---Close-24347
on 12.8.2024.
Support:24210.80/24168.85/24141.80/24074.20/23992.65/23985.80/23667.10/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.
Resistance:24419.75/24461.05/24854.80/24999.75/25078.30/25152/25337/25494/25551/26118.
OVERALL VIEW:
--
It opened on a negative note and thereafter
had both side moves during the day but finally ended the day with a loss of 20.50 points. Please
note that the stipulated time for
filling the gap of 2.8.2024 & 5.8.2024 has ended but it will surely
fill the gap one day (gap figure is 24686.85
& 24956.40), which please keep this in mind. The technical setup is slightly
weak, it is having see-saw movement every other day with huge volatility, which
is not good sign for a steady market, furthermore the overbought condition on
the weekly and monthly chart is also present but it has neutralized on the
daily chart to some extent, therefore it seems that it can move in a range or
move up for some time and then may go down further may be with in-between short
relief rallies. It is already into the correction mode for its recent rise, furthermore
it is also below almost all its short term moving averages and few medium term
moving averages on the daily chart. Furthermore almost all important technical
indicators are negative on the daily chart and few on the weekly & monthly
chart are also negative, pointing that the down move is likely to be resumed
after some time. But the good point is that it is well above its pullback
threshold points of 24173.27 & 24182.24, which is a positive sign
and if it stays above it on the closing basis then the up move can extend.
Moving up from here its broad resistance
points would be at 24368---24486—24537-----24626-----24799----24841.38----24854.80(some
figure may change, for in between resistance points see the table on the up
side), it may correct at any of these points but if it moves above 24537 and sustain on the closing basis
then it may get into the up momentum track again and finally if it moves above 24854.80
and sustain on the closing basis, then it could retest its all-time high of 25078.30
or may go beyond it also.
Similarly moving down from here it may find
good support at 24182.24---24173.27---24074---23992.70---23985.80----23757----23695----23667.10---23627.90---23450---23350---23338.70---23284----23180---23110.80---22732---22178----22040,
please note that if it sustains above 24182.24 & 24173.27 on the
closing basis then the up move can extend, else it may resume the down move
again, break and close below 23992.70
& 23985.80 may trigger fresh fall, break and close below the range of 23695---23667.10
& 23627.90 may accelerate the fall further and thereafter break and
close below each point will weaken it further. Please note that sustained
close below 24182.24 & 24173.27 will make the on-going correction more
painful price-wise & time-wise both.
Since
it is into correction mode therefore it is still sell on the rise market and
sell on the price breakdown in general but both side trades can be tried
depending on the price action for intraday gains. Please note that since it is
into deep correction mode therefore buy trade could be a slightly risky affair.
NOTE: - IF IT HOLDS THE RANGE OF 24182.24---24173.27 ON THE CLOSING BASIS THEN THE UP MOVE CAN EXTEND
FURTHER; ELSE IT MAY RESUME THE DOWN MOVE AGAIN. IT IS IN THE LONG TERM UPTREND, BUT IT IS IN
CORRECTIVE MODE NOW.
STRENGTH:-
1. It is in
the long term uptrend now.
2. It is
well above its critical points of 21821.05---21801.45---21777.65---21776.87---21731.40---21727.75
& 21710.20, which is must to keep the up momentum going in the year 2024.
Sustained break below this range may witness accelerated fall.
3. The price action was mixed
today.
4. It
has made higher top & bottom on the line & bar chart both.
5. One out of seven important
technical indicators is positive on the daily chart
WEAKNESS:-.
1. Six out of seven important
technical indicators are negative on the daily chart
2. 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.
3. 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.
4. It is into deep correction mode
now as it is below almost all its correction threshold point of 24873.57----24841.33----24670.42
& 24636.50 (figures may change). The other correction
threshold point is 24182.24(figure may
change) and sustained
close below 24182.24 will make the correction deeper and painful.
5. It is below almost all its
short term moving averages on the daily chart and the important range for the
day is between 24537----24475----24472----24399---24388----24339(figure will change every day), sustained close below this range can
deepen the down move.
TRADING CALL: --
1. Long trade can be tried on
decline near or within the range of 24182.24
& 24173.27 with a stop loss of 24100
or if it moves above 24370 and
maintain for some time with a stop loss of 24300
for a possible intraday gains, else avoid. Please note that long trade in a corrective market could be a risky
affair but can be tried near critical support points for intraday gains.
2. Short trade can be tried on the rise near or within the range of 24580--24600
with a stop loss of 24670 or can sell if it moves below 24100
with a stop loss of 24200 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
