A TECHNICAL UPDATE ON CNX-NIFTY—6.7.2023

 

CNX-NIFTY

 Open-19405.95--High—19421.60--Low-19339.60--Close-19398.50 on 5.7.2023.

Support: 19303/19275/19201.70/19189/19138/ 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: 19450/19498/19535/19639/19663/19674/19748/20160/20210/20390.

 (Bold and underlined figures are most important)

It has been continuously moving up for the last 7 days but today it failed to cross its previous day’s high which shows some fatigue and it may possibly correct on 5.7.2023, but as of now it is exhibiting extraordinary strength for the continuation of the up move. It is important to mention here that it still has unfilled gaps, so the threat of filling the gap is still there and most importantly strait rise for 7 days is very concerning and makes it highly vulnerable for correction and it can set in any moment, but the momentum is so strong now, therefore this rally may continue for few more days  before correction sets in, but please note that vertical rise may have vertical fall too at times so be alert and careful at this point of time.

Moving up from here it may face resistance at 19450---19498---19515---19535---19639, it may correct at any of these points and then may resume the up move again. Similarly going down its support points could be at 19248—19227---19205---19190---19110------19020---18887.60(figures may change), it may bounce back from any of these points and resume the up move again, but break below 19248 will push it into very short correction for its recent rise and thereafter break below each points may deepen the correction, break below 19190 will be an alert point and break below 19020 will be an warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 18887.60  and sustain on the closing basis. 

It is in the strong long term uptrend and it is buying on decline market in general, but in light of unfilled gaps and vertical rise it is suggested to avoid long trade below 19248 for the day. 

TRADING TIPS:--

1. Long trade can be tried on decline at appropriate points or near 19248 and not below it with a stop loss of 19180 or if it moves above 19446 and maintain for some time with a stop loss of 19330(it could be a risky trade for the day). However, aggressive traders can also try long trade on sharp decline near or within the range of 19100—18900 with a stop loss of 18850.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it 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 19530----19560 with a short stop loss of 19600 or sell near 19446 if it does not move above it even intraday with a short stop loss of 19470, it could be a risky trade 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.