CNX-BANK NIFTY
Open—52466.70--High—52619.05--Low—52331.60---Close—52396.80 on
16.7.2024.
Support:52351.15/52342.25/52246.70/51996.65/51957/51749.45/51138.90/51133.20/50252.95/49974.75/49530.45/49057.40/48636.45/48313.60/48292.25/48203.45/48161.75/47435.75/46983.75/46579/46077.85.
Resistance:52828.45/53180.75/53357.70/53477/53503/53575/53633/53773/53913/53970/54070/54139/54257/54365/54604/54815/55097.
OVERALL VIEW: --
It opened on a positive note and thereafter had both side
moves during the day and finally ended the day with a loss of 59.10
points. The chart setup has weakened a bit and the volatility is also a concern,
furthermore , it is already into short correction mode for its recent rise as
it is way below its correction threshold points of 53036.49---52834.06 & 52454.47 and also below some short
term moving averages 52544----52465---52422 and most of the important
technical indicators have turned negative on the daily chart, so all together
it is showing weakness and pointing that it could head down further in coming
days, however if it could still manages to hold its balance first key support
range points of ---52377----52367-----52129-----52007----51996.65----&51957
(figures may change) on the closing basis then the chance of up move will still
be alive. Please note that if it maintains above 52129(figure may change) on the closing basis then there is a
possibility that it may resume the up move again, else it may slide down and close
below 52007---51996.65
& 51957 may accelerate the fall and will make the chart setup
very weak. 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
51639.66-----51133.20(figures may change) then there is a bleak chance that it could still bounce
back but sustained break and close below 51639.66 will signal that a big
correction may be ahead, sustained break below 51133.20 may
accelerate the fall, break and close below 48720 will threaten the long term
uptrend and finally sustained break and close below the range of 48636.45---48292.25
&48203.45
will trigger fresh fall and it could be sharp in the intensity. 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 is not consistent off late and it was mixed today, so keep
an eye on the price action for further direction. Since it is into correction mode therefore 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: - CLOSE BELOW 51996.65 & 51957 MAY WITNESS AN ACCELERATED FALL.
STRENGTH:-
1. It is in
the long term uptrend, but break below 48720 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. Three out
of seven important technical indicators are positive on the daily chart.
WEAKNESS:-
1. The price
action was mixed today.
2. It is already into correction mode as it is below
its threshold point of 53036.49 & 52834.06, the other important
correction threshold points are at 52454.47 & 51639.66(figures may
change). Please note that break below each point will make the correction
deeper.
3. It has
made lower top & bottom on the line & bar chart.
4. 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.
5. 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.
6. Four out
of seven important indicators are negative now.
7. It is below
half of its short term moving averages now on the daily chart and the important
average range for today is between 52544----52465----52422----52377----52367---52007(figure will change every day), sustained break below this range can trigger down
move.
TRADING CALL: --
1. Long trade can be tried on decline near 52189
if it holds this level for some time with a stop loss of 51940, 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 52660---52700 with
a stop loss of 52850 or can sell if it maintains below 52189 with
a stop loss of 52360. 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.
