A TECHNICAL UPDATE ON CNX-NIFTY—21.7.2023

 

CNX-NIFTY

 Open-19831.70--High—19991.85-Low-19758.40--Close-19979.15 on 20.7.2023.

Support: 19961/19911/19880/19820/19748/19674/19663/19639/19608/19584/19535/19523.60/ 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: 20160//20236/20278/20390/20719/20944.

 (Bold and underlined figures are most important)

It continued the up move for the 6^th day in a row and hit a new all-time high of 19991.85 and finally ended the day near the high with a gain of 146 points. It is exhibiting extraordinary strength for the continuation of the up move. The technical chart setup is excellent as of now and most importantly all the important technical indicators are positive now which is a good sign. It is in the strong long term uptrend and it is buying on decline market in general as of now. Although it is technically strong on all the parameters as of now but volatility in last few days and strait rise for the 6^th day is slightly concerning and with every passing day of rise vulnerability for correction is increasing and it can set in any moment soon. Therefore    in view of this one should be slightly alert and cautious in the long trades at this point of time. The bias is hugely bullish as of now.

Moving up from here it may face resistance at 20160---20236---20390---20719 it may correct at any of these points and then may resume the up move again. Please note that the range of 20236---20390 is the critical resistance range and if it moves above it and sustain then the rise could continue, else it may correct from this range.

Similarly down from here its support points could be at 19888---19865----19829.42---19674---19653—19631—19570---19526---19441---19417---19385---19356---19327---19323----19303.60—19300----19245(figures may change), it may bounce back from any of these points and resume the up move again. But break below break below 19829.42 will push it into short correction for its recent rise and thereafter break below each support point will weaken it further, break below 19526 will be an alert point, break below the range of 19385---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 19750 could be a risky bet for the day.

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 19829-----19760 with a stop loss of 19710 or if it moves above 19992 and maintain for some time with a stop loss of 19900. However, aggressive traders can also try long trade on sharp decline at appropriate points or near 19595 with a stop loss of 19520.

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 20160----20200 with a stop loss of 20250. 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.