A TECHNICAL UPDATE ON CNX-NIFTY—1.9.2023

 

CNX-NIFTY

 Open-19375.55---High—19388.20-Low-19223.65--Close-19253.80 on 31.8.2023.

Support: 19253.60/19245/19223.65/18887.60/18646.70/18555.40/18464.55.

Resistance: 19296.45/19300/19303.60/19361.75/ 19465/19467.50/19482.75/19523.60/19563.10/19584.45/19615.95/19645.50/19795.60/19867.55/19887.40/19991.85.

 (Bold and underlined figures are most important)

It opened on a positive note but could move up much further and started to drift down and finally ended the day near the low of the day with a loss of 93.65 points. Although, it is holding the lower band of its critical range of 19303---19296---19253.60---19245---19229.60---19223.65 but hovering around this range for quite some time is a weak sign, if it had the strength it should have bounced back sharply long back. It is already into short & medium term corrective mode for earlier gain, it is also into short correction mode for its recent rise as it is well below its threshold point of 19506.37(figure may change) and it is also below its pullback threshold point of 19405(figure may change) therefore chances of an up rally is bleak if it remains below it. The short term technical setup is weak and the technical indicators as of now are also indicating weakness on the daily chart and most importantly the price action is also weak, therefore it is likely to go down in coming days. But I once again reiterate that as long as it holds the range of 19253.60---19245---19229.60---19223.65 on the closing basis the hope of up move will be alive and sustained break below it will trigger fresh fall. Please note that for the steady up movement it has to moves above 19453---19585 & 19645.50(figure may change) and sustain on the closing basis, else it may move in the range before either side breakout happens. The short and medium term bias is down as of now but the long term uptrend is still intact.

Moving down from here its support points could be at 19253.60---19245----19229.70---19223.65---18887.60--18659(figures may change), it may bounce back from any of these points and resume the up move again or may slide down also. It is already into correction mode and break below each support point will weaken it further, break below the range of 19245----19223.65, will push it into deep and long term corrective mode and will trigger fresh fall, break below 18887.60 may accelerate the fall and finally break below 18698(figure will change every day) will threaten the long term uptrend which may please be noted. 

Moving up from here it may face resistance at 19278--19311----19365----19407---19453---19483---19506.37----19517---19585—19608----19645.50---19698---19796---19811---19838(figure may change), Please note that if it moves above 19405 and sustain on the closing basis then the up move may extend, it will get out of recent rise corrective mode if it moves above 19506.37 and sustain and finally it may get into steady up movement again if it moves above 19453---19585 & 19645.50(figure may change)  and sustain on the closing basis.

IMPORTANT NOTE: It is into short and medium term correction mode, so it is sell on the rise market now, therefore long trade should be avoided in general but can be tried by aggressive traders at critical support points for pullback gains. Please note that long trade below 19245 & 19223 could be a risky bet for the day. The technical indicators as of now are pointing that it could break 18700 levels in coming days/week if it breaks its key support points as mentioned above. So be watchful.

TRADING TIPS:--

1. Safe traders should avoid long trade till correction completion signs are visible or it closes above 19452 and sustain. However, aggressive traders can try long trade if it holds the range of 19245----19223 with a stop loss of 19170. Please note that long trade could be a risky bet in correction mode but can be tried at critical support points for the pullback gains with extreme alert and caution.

2. It is still in the long term uptrend therefore short trade in general could be a risky affair but as it is into correction mode, therefore short trade can be attempted but with caution 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 19385----19425 with a stop loss of 19485 or sell if it moves below 19223 with a stop loss of 19270.

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.