A TECHNICAL UPDATE ON CNX-NIFTY—9.6.2023

 

CNX-NIFTY

 Open-18725.35--High—18777.90--Low-18615---Close-18634.55 on 8.6.2023.

Support: 18604.45/ 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: 18662.45/16696.10/18778/18788/18887.60/18991/19305/19450/19535/19674.

 (Bold and underlined figures are most important)

The view and observation posted for 5.6.2023 will also be relevant for 9.6.2023 with the following addition or modification in figures and partly in views.

As expected it gotten into short correction today for its very recent rise and fell below its critical point of 18696.10 & 18662.45 but the uptrend is still intact as of now. The correction may last for 2-3 trading sessions and it will get out of correction if it closes above 18703 and if it does so then it may resume the up move again otherwise it may move down. It is important to mention here that as long as it holds 18476 on the closing basis chances of retest its all-time high of 18887.60 will be alive and it may go beyond it also, else correction may deepen. 

1.  The price action showed distinct weakness as it closed below the yesterday’s low of 18636.

2. Except for one all the other important technical indicators are positive on the daily chart, which is good but one cannot ignore the weakness in one indicators it may also play spoil sport if price action weaken further. So be alert and cautious in long trade at this point of time.

TRADING TIPS:--

1.  For safe traders long trade it is suggested to avoid long trade for the day, however aggressive traders can  try long trade on decline at appropriate points and finally near 18487 but not below it with a stop loss of 18425 or if it moves above 18673  and maintain for some time with a stop loss of 18600. Please note that long trade could be risky for the day.

2. As it has gotten into short correction therefore short trade can also be attempted on the price breakdown for intraday gain. One can try to sell if it moves below 18612 with a stop loss of 18680.

IMPORTANT NOTE:- It is in the uptrend ,therefore short trade could be a risky affair but it can be attempted at appropriate points with strict stop losses for intraday gains.

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.