A TECHNICAL UPDATE ON CNX-NIFTY—12.6.2023

 

CNX-NIFTY

 Open-18655.90--High—18676.65--Low-18555.40---Close-18563.40 on 9.6.2023.

Support:18531.60/18476/18464.55/18458.90/18350.95/18265.25/18210.25/18202.40/18201.25/18134.75/18131.70/18114.65/18105.30/18060.40/18042.40/17959.20

Resistance:18604.45/ 18662.45/16696.10/18777.90/18887.60.

 (Bold and underlined figures are most important)

The long term technical setup still looks good but in last two days it has gotten into short correction for its recent rise. Furthermore except for few short terms moving averages on the daily chart it is almost above all its short, medium and long term moving averages on the daily, weekly and monthly chart which indicates strength. But please note that 3 out of 4   important advance technical indicators have turned negative on the daily chart, the price action is also weakening, so all together the situation at this point of time is slightly concerning and indicate that it may moderately or sharply correct further from here in coming days. It is important to mention here that as long as it holds 18476 levels on the closing basis  the chances of retesting its all-time high of 18887.60 or may go beyond it also will be alive, but sustained break below 18476 & 18464.55 on the closing basis may  accelerate the down move, which please note. It is in short correction now and it may last for few days but if it has the strength then this correction should not last for more than 3-4 days in all and it should bounce back sharply and should move above its key figures as mentioned below. The long term trend is up as of now.

Moving up from here it will face resistance at 18604.45---18608---18642---18662.45---16696.10----18703----18777.90---18887.60, please note that to get out of complete corrective mode and to pick up strong up momentum again it has to move above 18703 and sustain on the closing basis, else it may move sideways or drift down.

Similarly moving down its strong and critical support points could be at 18531.60---18476---18464.55---18362.58---18338----18317---18131.70---18105.30---18060.40---18013---17970, break below 18476 & 18464.55 will trigger fresh correction and it will deepen if it breaks further support points. Please note that to keep the uptrend on or alive it has to sustain above the range of 18131.70---18010 in fact above 18131.70 on the closing basis else break below 18010 may accelerate the fall.

In view of the above observation, for safe traders long trade can be tried if it holds 18531 for some time with a stop loss of 18455, however aggressive traders can also try long trade on decline near 18476 but not below it with a stop loss of 18435, please note that long trade below 18531 could be a risky affair for the day. Since it is into correction short trade can also be attempted on price breakdown and if it moves below 18531 with a stop loss of 18590 or if it moves below 18464 with a stop loss of 18540 for the intraday gains.  Do not trade without proper stop loss.

IMPORTANT NOTE:- It is in the uptrend but since it is into short correction mode, therefore one should be alert and cautious in the long trade at this point of time.

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 favourable 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. 

m for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.