A TECHNICAL UPDATE ON CNX-NIFTY—13.7.2023

 

CNX-NIFTY

 Open-19497.45--High—19507.70--Low-19361.75--Close-19384.30 on 12.7.2023.

Support: 19303.60/19275/19246.50/19234.40/19201.70/19189/19138/ 19104/19035/18991/18887.60/18886.60/18881.45/18794.10/18864.70/18778/18696.10/18660.65/18604.45/ 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: 19450/19498/19523.60/19535/19639/19663/19674/19748/20160/20210/20390.

 (Bold and underlined figures are most important)

It went near its all-time high of 19523.60 again but could not cross it and slipped down sharply in last half hour of trade and ended the day with a loss of 55.10 points. Please note that it made multiple attempts in last few days to cross its all-time high of 19523.60, but failed therefore had sharp down move today, but despite decline it is still not in real correction as it is well above its threshold point of 19316.65 and also above its pullback threshold point of 19356, therefore it is still looking good for the continuation of the up move in the coming days, provided it holds these points on the closing basis. But it is important to mention here that it can resume the lost up momentum only if it moves above 19523.60 and sustain on the closing basis and that should happen in next 2-3 trading session, else there is a strong chance that it may slip into correction and could head downward because some of the important technical indicators are pointing towards weakness in coming days if it does not bounce back sharply in a shortest possible time, which please note.

Moving down from here its support points could be at 19356---19316.65—19300----19295.10—19273.65---19246.50---19234.40---19212---19201.70---19189---19178----19000---18907----18887.60(figures may change), it may bounce back from any of these points and resume the up move again. Please note that 19356 (figure may change) is its pullback threshold point and till it holds this level on the closing basis chances of up move will be alive, but break below 19316.65 will push it into very short correction for its recent rise, and thereafter break below each points may deepen the correction, break below the range of 19246.50---19234---19201.70----19189 will be an alert point, break below 19040 will be an warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 18907 & 18887.60  and sustain on the closing basis. 

 Moving up from here it may face resistance at 19498---19507.70---19512.20---19515.10---19523.60---19535---19590---19639---19666, it may correct at any of these points and then may resume the up move again. I once again reiterate that it will resume the up momentum only if it moves above 19523.60 and sustain on the closing basis.

It is in the strong long term uptrend and it is buying on decline market in general, till it holds its critical support points as mentioned above. In view of today’s movement on should be extremely alert and cautious in the long trade at this point of time. 

TRADING TIPS:--

1. Safe traders can try long trade on decline if it holds 19356 for some time but not below it with a stop loss of 19290, else avoid. However, aggressive traders can also try long trade on sharp decline at appropriate points or near or within the range of 19246—19200 and then 19040----18900 with a stop loss of 19165 & 18840 respectively. LONG TRADE BELOW 19234.40 COULD BE A RISKY TRADE FOR THE ENTIRE WEEK STARTING FROM 10.7.2023 AND BELOW 19300 FOR THE DAY.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it can 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 19500----19530 with a short stop loss of 19570 or sell if it moves below 19300 with a  stop loss of 19360, both the trade could be a risky bet but worth trying at this juncture.

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.