A TECHNICAL UPDATE ON CNX-NIFTY—19.7.2023

 

CNX-NIFTY

 Open-19787.50--High—19819.45-Low-19690.20--Close-19749.25 on 18.7.2023.

Support: 19748/19674/19663/19639/19608/19584/19535/19523.60/ 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: 19835/19880/19911/20160/20210/20236/20390.

 (Bold and underlined figures are most important)

It opened with an up gap for the 2^nd day in a row and hit a new all-time high of 19819.45 and then slipped down to hit a low of 19690.20 for the day but finally ended the day with a gain of 37.80 points. It filled the today’s gap during the day and despite volatility it is exhibiting extraordinary strength for the continuation of the up move which is a good sign. The technical chart setup is also good as of now but one out of five important technical indicator is pointing towards slight weakness, however if price action remains strong then it can turn positive in coming days. It is in the strong long term uptrend and it is buying on decline market in general as of now, but in view of one weak indicator one should be slightly alert and cautious in the long trades as it can drag it down also. The bias is hugely bullish as of now.

Moving up from here it may face resistance at 19844---19880---19911---20160---20210---20236---20390 it may correct at any of these points and then may resume the up move again.

Similarly down from here its support points could be at 19748---19697.70---19542—19521---19499---19480---19437---19404---19385---19356---19327---19303.60—19300----19284---19246.50---19234.40---19216---19201.70---19189---19133----19113.55(figures may change), it may bounce back from any of these points and resume the up move again. But break below 19697.70 will push it into short correction for its recent rise, thereafter break below each support point will weaken it further, break below the range of 19385---19356---19327---19303.60---19300 may trigger fresh fall, it may lose upside steam for a while if it moves below 19167 and sustain on the closing basis and finally if it moves below 19113.55 and sustain on the closing basis then it will get into deep and long corrective mode. 

IMPORTANT NOTE: - Long trade below 19560 could be a risky bet for the day.

TRADING TIPS:--

1. Long trade can be tried on decline near 19595 with a stop loss of 19510 or if it maintain above 19750 for some time with a stop loss of 19680. However, aggressive traders can also try long trade on sharp decline at appropriate points or near or within the range of 19385—19360 with a stop loss of 19290. 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 19845----19880 with a short stop loss of 19930. 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.