A TECHNICAL UPDATE ON CNX-NIFTY—19.6.2023

 

CNX-NIFTY

 Open-18723.30--High—18864.70--Low-18710.50--Close-18826 on 16.6.2023.

Support: 18794.10/18778/16696.10/18662.45/18604.45/ 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: 18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

As expected and envisaged it bounced back the very next day of the fall   and moved above its all immediate critical points the last being at 18791(figure may Change)today, which indicates strength and if it hold this point and 18770 it can retest its all-time high of 18887.60 or may go beyond it also on 19.6.2023 itself, but if it close below it then it can slip into short correction again and break below the other critical points of 18770----18733---18708---18675---18555---18476 ( figure may change)-may deepen the correction, but it can bounce back also from any of these points, which may  be noted. Please note that it is above its short, medium and long term moving averages on the daily, weekly and monthly chart which is an extremely positive sign, but two out of four important advance technical indicators are still negative, which is slightly concerning, however if price action remains o.k. then it can also turn positive in due course but caution is required now. However the overall chart setup and price action is also good and indicates that the up move is likely to continue with intermittent correction. Last but not the least in worst case scenario 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.

Moving up it will face resistance at 18865---18887.60(ATH) ----18915----19138----19498---19764, since it is close to its all-time high top so chances of correcting near the top is always there but if it gives upside breakout from the top of 18887.60 and sustains on the closing basis then it can scale new highs in coming days. In view of this for safe traders it is suggested to be extra cautious and alert at this juncture and try fresh long trade if it closes above 18887.60 and sustains or on decline at appropriate points. But aggressive traders can try long trade now also. It is in the long term uptrend and it is buy on decline market, but exercise some caution in the long trade in light of two weak technical indicators at this point of time.

TRADING TIPS:--

1. Long trade can be tried on decline at appropriate points or near or within the range of 18730---18710 and not below this with a stop loss of 18670.

2. Aggressive traders can also try long trade if it moves above 18865 and maintain for some time with a stop loss of 18780. It could be a risky trade mind you.

3. If it fails to cross its all-time high top of 18887.60( even intraday) in first hour of trade then one can try short trade also with a short stop loss of 18950. It could be a highly risky trade but worth trying at this point.

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.