A TECHNICAL UPDATE ON CNX-NIFTY—23.6.2023

 

CNX-NIFTY

 Open-18853.60--High—18886.60--Low-18759.50--Close-18771.25 on 22.6.2023.

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: 18778/18864.70/18794.10/18881.45/18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

It has been facing rejection near the all-time high top of 18887.60 for the last five days and eventually it corrected today and slipped into short correction mode for its recent rise, it may last for 2-3 days at max but if it last beyond this then it could be a really weak indication. The overall chart setup is still o.k. but three out of four important advance technical indicators are negative, which is concerning and it can  drag it down further ,if it fails to bounce back sharply in short span of time. The long term bias is positive as of now.

Moving down further from here its critical support points could be at 18725---18692----18659---18555---18476---18464---18421—18401---18362, it may bounce back again from any of these points and may resume the up move again, but break below each support point will deepen the correction but please note as long as it holds 18476 on the closing basis chances of retesting its all-time high of 18887.60 or may go beyond will be alive and break below 18476 & 18464 will trigger fresh fall and break below 18401 & 18362 will accelerate the fall.

Please note that to get out of corrective mode and put it back on up momentum track it has to move above 18787----18809 & 18838 and sustain on the closing basis. Moving up further it will face resistance at 18887.60(ATH)----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 above, but exercise some caution in the long trade in light of three weak technical indicators and five failed attempts to cross the top. Therefore fearless long trade can only be attempted once it crosses its all-time high of 18887.60 and sustain on the closing basis till then exercise some caution because you never know how correction will culminate eventually.

TRADING TIPS:--

1. Long trade can be tried if it holds 18755 for some time with a stop loss of 18700.

2. As it slipped into short correction again today, therefore short trade can also be attempted on the reasonable rise or on the price breakdown for intraday corrective gains. Short trade can be tried on the rise near or within the range of 18865---18888 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.