A TECHNICAL UPDATE ON CNX-NIFTY—17.7.2023

 

CNX-NIFTY

 Open-19495.20--High—19567--Low-19385.80--Close-19413.75 on 14.7.2023.

Support: 19535/19523.60/ 19498/19450/19303.60/ 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: 19584/19608/19639/19660/19663/19674/19748/19880/19911/20160/20210/20236/20390.

 (Bold and underlined figures are most important)

After yesterdays see-saw movement as envisaged it sharply bounced back again today and hit a new all-time high of 19595.35 and managed to close reasonably above its previous high of 19523.60 with a gain of 150.75 points. Although it is exhibiting extraordinary strength for the continuation of the up move off course with in between correction, but one out of four important technical indicator is pointing towards slight weakness, therefore a cautious approach is needed in the long trade. Please note that it is in the strong long term uptrend and it is buying on decline market in general as of now. Last but not the least as long as it holds the range of 19385---19327 on the downside there is no major threat to the on-going up move.

Moving up from here it may face resistance at 19584—19608—19639—19660—19663—19674—19748---19880---19911---20160---20210---20236 it may correct at any of these points and then may resume the up move again. Please note that 19639---674 & then 20160---20236 could be the tough range.

Similarly down from here its support points could be at 19526---19480---19371---19361---19356---19327---19303.60—19300----19246.50---19234.40---19201.70---19189---19122----18962---18942---18887.60(figures may change), it may bounce back from any of these points and resume the up move again. But break below 19526 will push it into short correction for its recent rise, break below 19480 may weaken it further, however as long as it hold 19356(figure may change) on the closing basis chances of up move will be alive, break below the range of 19327---19303.60---19300 will be an alert point, break below the range of 19246.50---19234---19211--19201.70---19189 may trigger fresh fall, break below 19122 will be an warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 18942 & 18887.60  and sustain on the closing basis. 

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 19385---19356 but not below it with a stop loss of 19290 or if it moves above 19596 and maintain for some time with a stop loss of 19520. 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 19122----18950 with a stop loss of 19165 & 18860 respectively. LONG TRADE BELOW 19327 COULD BE A RISKY TRADE FOR THE WEEK STARTING FROM 17.7.2023.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but 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 19685----19725 with a short stop loss of 19775 or sell if it moves below 19327 with a  stop loss of 19390, both the trade could be a risky bet but worth trying.

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 favorable 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.