A TECHNICAL UPDATE ON CNX-NIFTY—26.6.2023

 

CNX-NIFTY

 Open-18741.85--High—18756.40--Low-18647.10--Close-18665.50 on 23.6.2023.

Support: 18660.65/18604.45/ 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: 16696.10/18778/18864.70/18794.10/18881.45/18886.60/18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

It ended the on-going week near the low of the week, it is into short correction mode now, furthermore it has fallen below some of its short term moving averages on the daily chart, for the first time in the recent past it has broken bottom on the line & bar chart and most importantly three out of four important advance technical indicators are negative, which is concerning and as of now indicates that it could sharply fall in coming days and could hit much lower levels, if it does not bounce back sharply in next 2-3 trading sessions. Therefore all together it is exhibiting weakness now. But the long term bias is up as of now

Its range for the week starting from 26.6.2023 is between 18647---18887.60 and it may oscillate between the range during the week, so one can trade the range. But since it ended the last week near low of the week therefore chances of going down further from here is pretty bright at this point of time and break below 18647 can drag it down further.

Moving down it may find support at 18647---18622---18572---18555---18476---18464---18421---18401---18362.50 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 but break below 18476 & 18464 will trigger fresh fall and break below 18401 & 18362 will accelerate the fall. Last but not the least to keep the uptrend alive it has to maintain above 18131.70 & 18105.30, which may please be noted.

Moving up it has to close above 18775(figure may change) to gain some strength, but it will get out of the corrective mode and may pick up momentum only if it moves above 17787---18809---18839 and sustain on the closing basis. However if it closes above 18704(figure may change) and sustain on the closing basis then the chance of a pullback rally could be there.  

TRADING TIPS:--

1. Long trade can be tried if it holds 18647 for some time with a stop loss of 18600 or if it moves above 18704 and maintain for some time with a stop loss of 18640.

2. As it is into short correction mode, 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 18775---18800 with a stop loss of 18840. It could be a risky trade but worth trying or sell if it moves below 18647 with a stop loss of 18715.

IMPORTANT NOTE:-- It is in the long term uptrend and buy on decline market, but it is in correction mode now, therefore at this point it is suggested to be extra alert and cautious in the long trade and safe traders should avoid it because correction may take an ugly turn also therefore it has to be seen how correction  culminates eventually. Please note that market will give ample signal of correction completion. So watch out.

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.