A TECHNICAL UPDATE ON CNX-NIFTY—16.6.2023

 

 CNX-NIFTY

 Open-18774.45--High—18794.10--Low-18669.05--Close-18688.10 on 15.6.2023.

Support: 18662.45/18604.45/ 18555.40/18531.60/18464.55/18458.90/18350.95/18265.25/18210.25/18202.40/18201.25/18134.75/18131.70/18114.65/18105.30/18060.40/18042.40/17959.20

Resistance: 16696.10/18778/18794.10/18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

After three days of rise it corrected today and slipped into short correction for its very recent rise again as it moved below its important points of 18738--18733 & 18703 today. Moving down below the other important support points of 18654---18620---18555---18501---18476---18464 will further deepen the correction. Please note that it is still above its short, medium and long term moving averages on the daily, weekly and monthly chart despite today’s correction which is a positive sign, but three out of four important advance technical indicators are still negative, which is slightly concerning and in fact this pulled it down today. However looking at the overall chart setup it seems that it is likely to bounce back from the down move within the range of 18600---18560 or earlier and may resume the up move again and will cross its critical points as mentioned above for a strong up momentum in next 2-3 trading sessions, else it may slide further. Last but not the least as long as it holds 18476 chances of  up move will remain alive with in between correction, but break below 18476 & 18464.55 may accelerate the fall, which may please be kept in the back of mind. The long term trend is up as of now.

TRADING TIPS:--

1.  Long trade can be tried if it moves above 18740 and maintain for some time with a stop loss of 18660 or long trade can be tried on decline  near or within the range of  18600---18560 with a  stop loss of 18520.

2. It slipped into correction again therefore short trade can also be tried if it moves below 18650 with a short stop loss of 18740. It could be a risky trade but worth trying at this juncture.

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.