A TECHNICAL UPDATE ON CNX-NIFTY—25.7.2023

 

CNX-NIFTY

 Open-19748.45--High—19782.75-Low-19658.30--Close-19672.35 on 24.7.2023.

Support: 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: 19674/ 19748/ 19830/19925/19991.85/20160//20236/20278/20390/20719/20944.

 (Bold and underlined figures are most important)

It opened on a flat note and thereafter moved in a range for quite some time the headed down and finally ended the day with a loss of 72.65 points. It is in short corrective mode and after giving decisive upside breakout from the rising channel on 20.7.2023 it fell back within the channel decisively the very next day i.e.21.7.2023 and it is still inside it and moving down. Furthermore three out of five important technical indicators are pointing towards some weakness; therefore all together things are looking slightly concerning and can drag it down further. Please note that the on-going correction should not last for more than next 2-3 trading sessions at the maximum and it may resume the up move again, but if it last beyond that then it could be disturbing and break below 19619---19562& 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 is into corrective mode, 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 because it can get ugly also at times. The long term bias is still hugely bullish as of now.

Moving down from here its support points could be at 19653—19631—19619---19570---19536---19422---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, break below 19619 will be an alert point, break below 19562 will weaken it for the on-going week, break below 19422 could lose the upside steam, 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 19737---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 will be the critical resistance for the day. It will get out of corrective mode if it closes above 19830 and sustains. However if it closes above 19737(figure may change) and sustain then it can have pullback up rally which could take it to 19786---19825---19865---19913---19925 please note that it can exhaust at any of these points or earlier also but if it moves above 19925 and sustain then it could retest its all-time high of 19991.85 or may go beyond it also.  

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 19619-----19570 with a stop loss of 19530 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 or within the range of 19425----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 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 19800----19830 with a stop loss of 19880.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.