A TECHNICAL UPDATE ON CNX-NIFTY—22.6.2023

 

CNX-NIFTY

 Open-18849.40--High—18875.90--Low-18794.85--Close-18856.85 on 21.6.2023.

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 with a marginal up gap and moved in a short range and during the day went near its all-time high of 18887.60 couple of times but could not cross it, however at the end it closed firmly but precisely below 30.75 points from the all-time high top. Please note that for the last 4 days it has been attempting to cross its all-time high top but failed, despite overall good and strong chart setup and price action because still two out of four important advance technical indicators are negative, which is concerning and it can still drag it down if it fails to cross its all-time high of 18887.60 in a short span of time, which please note. The long term bias is positive as of now.   

Please note that 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 the key points as mentioned below, but exercise some caution in the long trade in light of two weak technical indicators and four failed attempts to cross the top.

Moving down its critical support points could be at 18838---18825---18805---18783---18733---18719---18687---18632---18620---18560, it may bounce back again from any of these points and may resume the up move again, similarly break below 18825---18805---18783 will push 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.

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 holds 18838 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 in the uptrend, 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 18925. It could be a risky trade but worth trying or sell if it moves below 18700 with a stop loss of 18780.

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.