A TECHNICAL UPDATE ON CNX-NIFTY—1.8.2023

 

CNX-NIFTY

 Open-19666.35--High—19772.75-Low-19597.60--Close-19753.80 on 31.7.2023.

Support: 19748/ 19674/19664.30/19639/19608/19584/19535/19523.60/ 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: 19830/19925/19970.50/19991.85/20160//20236/20278/20390/20719/20944.

 (Bold and underlined figures are most important)

It opened on a positive note and finally ended the day with a gain of 107.75 points. It is into correction mode, it made lower top & bottom on the line & bar chart and most importantly four out of five important technical indicators are negative now which is concerning and pointing that it can go down from here in coming days. But the good point is that it has closed above its pullback threshold point of 19664.30(figure may change) today and if it holds this mark on the closing basis then the chance of up move will be alive, furthermore it has bounced back above its short term moving averages also and the price action was good today. Therefore it is likely to move up from here provided it holds 19664.30 and in worst case 19562.95 on the closing basis; else it may start to drift down. The short term chart setup and technical indicators are weak now but it is still in the strong long term uptrend and it is buying on decline market in general as of now. But in view of volatility, negative technical indicators and correction mode it is suggested to be alert and cautious in the long trade on decline till visible sign of correction completion emerges. So watch out.

Moving up from here it may face resistance at 19777---19830---19891---19906---19925---19991.85---20160---20236---20390---20719 it may correct at any of these points and then may resume the up move again or rally can fizzle out also. It will get out of corrective mode if it closes above 19830 and sustains and then it is expected to pick up good up momentum again and finally if it moves above 19906 and sustain on the closing basis then it could retest its all-time high of 19991.75 or may go beyond it also.   

Similarly down from here its support points could be at 19727---19664.30---19631—19619---19615----19603----19570---19562.95----19547---19536---19513---19441---19417---19385---19372---19356---19327---19323----19303.60—19300----19245----18887.60(figures may change), it may bounce back from any of these points and resume the up move again. It is already in the correction mode and break below each support point will weaken it further, but 19664.30 is the pullback threshold point  and if it holds this point then the chance of up move will be alive, break below 19619 will be an alert point, break below 19562.95 & 19547 may accelerate the fall, there is a strong chance that it could bounce back from 19441 but break below it could be a bad sign, break below the range of 19385---19372---19356---19327---19323---19303.60---19300 may trigger fresh fall and break below 19245 will get it into deep and long corrective mode and finally break below 18887.60 may accelerate the fall.. 

IMPORTANT NOTE:-Long trade below 19646 could be a risky bet for the day.

TRADING TIPS:--

1. For safe traders long trade can be tried on decline near 19665 but not below it with a stop loss of 19590 or if it move above 19780 and maintain for some time with a stop loss of 19700. However, aggressive traders can also try long trade on decline near or within the range of 19562----19547---19441 but not below it with a stop loss of 19370. It could be a risky trade but worth trying.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but as it is into correction mode, 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 19890----19910 with a stop loss of 19950 or sell if it moves below 19646 with a stop loss of 19715 .It could be a risky trade mind you 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 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.