A TECHNICAL UPDATE ON CNX-NIFTY—20.7.2023

 

CNX-NIFTY

 Open-19802.95--High—19851.70-Low-19727.47--Close-19833.15 on 19.7.2023.

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 continued the up move for the 5^th day in a row and hit a new all-time high of 19851.70 and finally ended the day near the high with a gain of 83.90 points. It is exhibiting extraordinary strength for the continuation of the up move. The technical chart setup is excellent as of now but one out of five important technical indicator is still pointing towards slight weakness despite continuous rise , however if price action remains strong, which is as of now then the indicator 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 and five days strait rise one should be slightly alert and cautious in the long trades because it can correct anytime. The bias is hugely bullish as of now.

Moving up from here it may face resistance at 19844---19865---19885---19911---20160---20210---20236---20390 it may correct at any of these points and then may resume the up move again. Please note that the range of 19865---19885 is the critical resistance range for the day and if it moves above it and sustain then the rise could continue.

Similarly down from here its support points could be at 19722.35---19608---19567—19545—19524---19480---19462---19444---19428---19385---19356---19327---19303.60—19300----19284---19267---19246.50---19234.40---19216---19201.70---19189---19138(figures may change), it may bounce back from any of these points and resume the up move again. But break below 19722.35 will push it into short correction for its recent rise, thereafter break below each support point will weaken it further, break below 19444 will be an alert point, 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 19267 and sustain on the closing basis and finally if it moves below 19138 and sustain on the closing basis then it will get into deep and long corrective mode. 

IMPORTANT NOTE: - Long trade below 19590 could be a risky bet for the day.

TRADING TIPS:--

1. Long trade can be tried on decline near 19722---19700 with a stop loss of 19650 or if it maintain above 19865 for some time with a stop loss of 19790. However, aggressive traders can also try long trade on sharp decline at appropriate points or near or within the range of 19444—19385 with a stop loss of 19290. LONG TRADE BELOW 19595 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 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 19940----19960 with a short stop loss of 20010. 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 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.