A TECHNICAL UPDATE ON CNX-NIFTY—20.6.2023

 

CNX-NIFTY

 Open-18873.30--High—18881.45--Low-18719.15--Close-18755.45 on 19.6.2023.

Support: 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: 18778/18794.10/18881.45/ 18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

It opened with an up gap and went up to 18881.45 near the all-time high of 18887.60 but could not cross it and started to drift down and finally ended the day with a loss of 70.55 points. As expected it corrected today and slipped into short correction mode for its very recent rise as it has gone below its threshold points, this correction may last 2-3 days. Moving down further its critical support points could be at 18733---18719---18687---18632---18620---18560, it may bounce back from any of these points and may resume the up move, similarly break below each point will deepen correction and break below 18560 may accelerate the fall. Please note that to get out of correction and to pick up momentum it has to move above 18783 & 18805 and sustain on the closing basis. It is important to mention here that it is above its short, medium and long term moving averages on the daily, weekly and monthly chart which is a positive sign, but today three out of four important advance technical indicators are negative, which is slightly concerning and could drag it down further, so be alert and cautious at this point of time. However the overall chart setup is good and the price action is still o.k. and this indicates that the up move is still likely to continue with intermittent correction provided it holds the key points as mentioned above. 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 18783----18805----18865---18887.60(ATH) ----18915----19138----19498---19764, as expected it corrected near the all-time high today ,therefore fresh  strong up momentum now is only expected once it closes above 18887.60 and sustain on the closing basis. It is in the long term uptrend and is buy on decline market now till it holds key points as mentioned above, but exercise some caution in the long trade in light of three 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---18719 and not below this with a stop loss of 18680. Long trade below 18719 could be a risky trade for the day.

2. Aggressive traders can also try long trade if it moves above 18805 and maintain for some time with a stop loss of 18740. It could be a risky trade mind you.

3. As it is in short correction now, therefore short trade can also be attempted on the rise near or within the range of 18876---18887 with a short stop loss of 18950. It could be a risky trade but worth trying or sell if it moves below 18680 with a stop loss of 18760.

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.