Tuesday, 20 June 2023

A TECHNICAL UPDATE ON CNX-NIFTY—21.6.2023

 

CNX-NIFTY

 Open-18752.35--High—18839.70--Low-18660.65--Close-18816.70 on 20.6.2023.

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: 18864.70/18881.45/ 18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

It opened on a flat note and started to drift down but in the afternoon session it started to recover from the key support point ranges (see post of 20.6.2023) and ended the day with a gain of 61.25 points. It got out of the corrective mode as expected and the overall setup is showing strength as it is above its short, medium and long term moving averages on the daily, weekly and monthly chart and the price action is also good. But moving up from here it will face resistance at 18838---18865----18881.45----18887.60(ATH) before it could cross its all-time high. Furthermore it is important to mention here that despite today’s smart recovery three out of four important advance technical indicators are still negative, which is concerning and it can still  drag it down from here if it fails to cross its all-time high of 18887.60 in next 1-2 trading session, which please note. The long term bias is positive as of now.   

 Moving down its critical support points could be at 18805---18783---18733---18719---18687---18632---18620---18560, it may bounce back again from any of these points as it did today and may resume the up move again, similarly break below 18805 will pus it into short correction again for its recent rise and breaking further support point will deepen the correction and break below 18560 may accelerate the fall. 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.

Once it crosses its-all-time high of 18887.60 and sustain on the closing basis then the possible upside target point could be at 18915----19138----19498---19764. 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. For safe traders it is suggested to avoid long trade till it closes above 18887.60 and sustain. But aggressive traders can try long trade if it moves above 18838 and maintain for some time with a stop loss of 18780 or can try buy on decline near 18755 and not below it with a stop loss of 18700. Long trade could be a risky affair and particularly buy on decline for the day, .

2. It is out of short correction now, but short trade can still be attempted on the reasonable rise or on the price breakdown for intraday corrective gains. Short trade can be tried near 18887.60 if it does not move above it (even intraday) in first hour of trade with a stop loss of 18950. It could be a risky trade but worth trying or sell if it moves below 18700 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.

 

 

 

 

 

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