A TECHNICAL UPDATE ON CNX-NIFTY—27.7.2023

 

CNX-NIFTY

 Open-19733.35--High—19825.60-Low-19716.70--Close-19778.30 on 26.7.2023.

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:  19830/19925/19970.50/19991.85/20160//20236/20278/20390/20719/20944.

 (Bold and underlined figures are most important)

It opened on a very positive note and went up further and finally ended the day with a gain of 97.70 points. Although it staged a good bounce back today but it is still short corrective mode. Furthermore four out of five important technical indicators have turned negative, which indicates further fall may be ahead and this is highly concerning. However the good point is that it closed above its pullback threshold point of 19705(figure can change) and if it holds this point on the closing basis then the chances are that this rally could move further to 19804---19848---19903---19917 please note that this pullback rally can exhaust at any of these points or earlier also but if it moves above 19917 and sustain then it could retest its all-time high of 19991.85 or may go beyond it also, else it may drift down and break below 19672—19619.40 & 19615.95 may trigger fall and it can have an accelerated down move.

It is in the strong long term uptrend and it is buying on decline market in general, but it is into short corrective mode now and almost all important technical indicators are negative, so the chances of going down from here still looks imminent till it gets out of the corrective mode, therefore one should be slightly alert and cautious in the long trades at this point of time because how the correction will culminate has to be seen because sometime it may get ugly also.

Moving down from here its support points could be at 19672---19653—19631—19619---19615----19570---19536---19497---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 19562 will weaken it for the on-going week, break below 19497 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 19830---19925---19991.85---20160---20236---20390---20719 it may correct at any of these points and then may resume the up move again. It will get out of corrective mode if it closes above 19830 and sustains and then it is expected to pick up momentum again.   

IMPORTANT NOTE:-Long trade below 19672 could be a risky bet for the day.

TRADING TIPS:--

1. For safe traders long trade can only be tried if it moves above 19830 and maintain for some time with a stop loss of 19740 or can buy on decline near 19672 but not below it with stop loss of 19650. However, aggressive traders can also try long trade on decline near or within the range of 19619---19590 and then 19498----19385 but not below it with a stop loss of 19545 & 19350. It could be a risky trade 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 19860----19890 with a stop loss of 19930 or sell if it moves below 19670 with a stop loss of 19750 .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.