2 2 2
CNX-BANK NIFTY
Open—51657.65--High—51944.65--Low—50784.25---Close—51317 on
24.7.2024.
Support:51138.90/51133.20/50784.25/49974.75/49530.45/49057.40/48636.45/48313.60/48292.25/48203.45/48161.75/47435.75/46983.75/46579/46077.85.
Resistance: 51749.45/51957/51996.65/52246.70/52342.25/52351.15/52794.55/53180.75/53357.70/53477/53503/53575/53633/53773/53913/53970/54070/54139/54257/54365/54604/54815/55097.
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 461.30
points. The chart setup has terribly weakened as it below it first critical key support range of 53036.49----52834.06---52454.47----52423---52279----52186---52093---52080------52000----51996.65----51957----51639.66-----51391.58
(figures may change), furthermore , it is already into short
correction mode for its recent rise and correction has deepened today, it has
also moved below all its short term moving averages today and below few medium
term moving averages also and all the
important technical indicators have turned negative on the daily chart, so all
together it is showing gross weakness and pointing that it may be heading for a
big fall in coming days if it remains
below 51639.66
on the closing basis. Please note that
if it moves above 51391.58 (figure may change) and sustain on the closing basis
then the chances are that it can give good relief rally and may resume the up
move again but it will gain strength only if it moves above 52430(figure will
change daily) and sustain on the closing basis, else down move may continue. It
is important to mention here that the next key support points are at 51138.90 & 51133.20(figures may change), sustained break below these points may
accelerate the fall further( it did break these points intraday today but
bounced back to close above it), break and close below 48968 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 and then the correction could be painful time-wise
and price-wise both. I once again repeat that all the important technical
indicators on the daily chart have turned weak and some indicators on the
weekly and monthly chart are also weak and showing overbought condition, which
indicates that it may deeply correct in the coming days/week/months and can
head down to 49700 or lower levels,
but please note that if price action remains good there is no major threat for
it to move down and the price action has been consistently weak for the last
few days and it was very weak 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: - IF IT FAILS TO MOVES ABOVE 51391.58 &
51639.66 AND SUSTAIN ON THE CLOSING
BASIS IN THE NEXT 2-3 TRADING SESSIONS THEN THE DOWN MOVE MAY CONTINUE, ELSE IT
MAY HAVE A RELIEF RALLY. SHORT TERM TREND IS BEARISH.
STRENGTH:-
1. It is in
the long term uptrend, but break below 48968 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.
WEAKNESS:-
1. The price
action was very weak today.
2. It is already into deep correction mode now as it is
below all its threshold point of 53036.49---- 52834.06----52454.47 & 51639.66
(figure may change), which is a very weak sign.
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. All the
seven important technical indicators are negative on the daily chart now.
6. It is below
almost all its short term moving averages now on the daily chart and the
important average range for today is between 52423---52279----52186----52093----52080---52000(figure will change every day), sustained break below this range can trigger big
down move.
7. It has
made lower top & bottom on the line & bar chart.
8. It is
below its pullback threshold point of 51391.58(figure may change).
Please note that if it moves above it and sustain on the closing basis then it
could possibly move ahead further, else down move may continue..
TRADING CALL: --
1. Long trade can be tried on decline near 51140
with a stop loss of 50990, 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 51750---51800 with
a stop loss of 52000 or can sell if it moves below 50990 with a
stop loss of 51200. 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.
