A TECHNICAL UPDATE ON CNX-NIFTY—24.7.2023

 

CNX-NIFTY

 Open-19800.45--High—19887.40-Low-19700--Close-19745 on 21.7.2023.

Support: 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: 19748/ 19830/19925/19991.85/20160//20236/20278/20390/20719/20944.

 (Bold and underlined figures are most important)

It opened with a sharp down move and gave a bounce back during the day but eventually went down and ended the day near the low with a loss of 234.15 points. As envisaged, volatility and vertical rise took its toll and it slipped into short correction mode today for its recent rise as it closed below its threshold point of 19829.42, furthermore one out of five important technical indicators is showing slight weakness and price action was also weak as it closed below its previous day’s low today, which is slightly concerning. Please note that the correction may last for 3-4 days at max and it may resume the up move again, but if it last beyond that then it could be disturbing and break below 19619 & 19384 will indicate significant weakness, so be watchful. It is in the strong long term uptrend and it is buying on decline market in general as of now but as it slipped into correction today, therefore one should be slightly alert and cautious in the long trades at this point of time because how correction will culminate has to be seen. The bias is still hugely bullish as of now.

Moving down from here its support points could be at 19674---19653—19631—19619---19570---19536---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 has slipped into correction mode today and break below each support point will weaken it further, break below 19619 will be an alert point, break below the range of 19385---19372---019356---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.. 

Similarly moving up from here it may face resistance at 19830---19925---19991.85---20160---20236---20390---20719 it may correct at any of these points and then may resume the up move again. Please note that the 19830 &.19925(figure may change) will be the critical resistance point for the day. It will get out of corrective mode if it closes above 19830 and sustains and may resume the strong up momentum if it closes above 19925.

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 19619-----19600 with a stop loss of 19540 or if it moves above 19830 and maintain for some time with a stop loss of 19770. However, aggressive traders can also try long trade on sharp decline at appropriate points or near 19385 but not below it with a stop loss of 19320. It could be a risky trade mind you but worth trying.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but as it gotten into correction today, 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 19860----19890 with a stop loss of 19940 or can sell below 19700 with a strict stop loss of 19760.  Both the trade 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.