A TECHNICAL UPDATE ON CNX-NIFTY—14.7.2023

 

CNX-NIFTY

 Open-19495.20--High—19567--Low-19385.80--Close-19413.75 on 13.7.2023.

Support: 19303.60/ 19300/19275/19246.50/19234.40/19201.70/19189/19138/ 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)

After yesterdays fall, as anticipated it staged a sharp bounce back today and within the stipulated time period and hit a new all-time high of 19567 and then moved in a range for quite some time but in the late afternoon it plunged down sharply however it ended the day with a small gain of  29.45 points. Although it hit new high but it still faced rejection at the top which is not a good sign. Please note that it slipped into very short correction today as it closed below its threshold point of 19504.80, but the overall technical setup is still good for the continuation of the up move till it holds the range of 19356---19300 on the closing basis. Kindly also note that today’s price movement was slightly concerning, furthermore some of the important technical indicators are also pointing towards weakness in coming days. Therefore if it fails to bounce back sharply in the next 2-3 trading session and move above its critical points and sustain on the closing basis then the chances are that correction may deepen further.  

Moving down from here its support points could be at 19356---19350---19328---19307—19300----19246.50---19234.40---19211---19201.70---19189---19178----19092---19079---18920----18887.60(figures may change), it may bounce back from any of these points and resume the up move again. It has slipped into very short correction today for its recent rise, however as long as it hold 19356(figure may change) on the closing basis chances of up move will be alive, break below 19300 will be an alert point, break below the range of 19246.50---19234---19211--19201.70---19189 may trigger fall, break below 19070 will be an warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 18920 & 18887.60  and sustain on the closing basis. 

 Moving up from here it may face resistance at 19504.80---19523.60---19567---19584---19608---19639---19660----19674---19748----19880---20160---20210--20236, it may correct at any of these points and then may resume the up move again. Please note that it will get out of corrective mode if it moves and sustain above 19504.80 and may pick up strong up momentum once it close above 19523.60 and sustain.  

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 price movement on should be extremely alert and cautious in the long trade at this point of time because correction may deepen. 

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 19070----18900 with a stop loss of 19165 & 18840 respectively. LONG TRADE BELOW 19331 COULD BE A RISKY TRADE FOR THE DAY.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it slipped into correction today therefore short trade 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 19540----19570 with a short stop loss of 19610 or sell if it moves below 19331 with a  stop loss of 19370, 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.