A TECHNICAL UPDATE ON CNX-NIFTY—27.6.2023

 

CNX-NIFTY

 Open-18682.35--High—18722.05--Low-18646.70--Close-18691.20 on 26.6.2023.

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)

The view and observation posted for 26.6.2023 will also be relevant for 27.6.2023 with the following addition or modification in figures and partly in views.

1. If it close above 18770(figure may change) it will 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. 

2. If it does not bounce back sharply in shortest possible time and moves above the key points as mentioned above then it may keep drifting down.

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 18725.

IMPORTANT NOTE:-- It is in the long term uptrend and buy on decline market, but it is in correction mode now, so long trade could be risky bet , therefore it is suggested to be extra alert and cautious in the long trade and safe traders should avoid it at all till correction completion sign emerges because correction may take an ugly turn also therefore it has to be seen in next few days 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.