A TECHNICAL UPDATE ON CNX-NIFTY—24.8.2023

 

CNX-NIFTY

 Open-19439.50--High—19472.05-Low-19366.60--Close-19444 on 23.8.2023.

Support: 19361.75/ 19303.60/19300/19296.45/19253.60/19245/19234.40/18887.60.

Resistance: 19465/19467.50/19482.75/19523.60/19563.10/19615.95/19645.50/19795.60/19867.55/19887.40/19991.85.

 (Bold and underlined figures are most important)

It opened on a positive note and had both side movement during the day and finally ended the day with a gain of 47.55 points. The short term technical setup and technical indicators are still weak on the daily chart and it is already into correction mode, therefore it is likely to go down again in coming days. But the good thing is that today it closed above its pullback threshold point of 19428(figure may change) and if it hold this mark on the closing basis then the up move can extend, else it may start to move down again and moving down it will have very strong support in the range of 19303----19245 and it may bounce back from this range as it did couple of times recently, but break below this range will trigger fresh fall.  Please note that for the steady up movement it has to moves above 19483---19560 & 19646(figure may change) and sustain on the closing basis. The short term bias is down but the long term uptrend is still intact as of now.

Moving up from here it may face resistance at 19450---19497---19536—19553----19567---19623---19645.50---19710---19818---19844(figure may change), Please note that it is in the pullback mode but pullback rallies are treacherous in nature and can end abruptly also, therefore it can correct at any of these points and may resume the up move again or rally can fizzle out also for good, so it is suggested to be alert and cautious in the long trade at this point of time.

Similarly moving down from here its support points could be at 19428---19420--19346---19310---19303.60—19300----19296.45---19253.60---19245----19234.40---18887.60--18575(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 19428 & 19420 will lessen the possibilities of the pullback up move, break below the range of 19303.60---19245 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 18638(figure will change every day) will threaten the long term uptrend which may please be noted. 

TRADING TIPS:--

1. Long trade can be tried if it holds 19428 for some time with a stop loss of 19360 or if it moves above 19483 and maintain for some time with a stop loss of 19405. But aggressive traders can also try long trade on sharp decline near or within the range of 19303---19253 but not below it with a stop loss of 19220. Please note that long trade could be a risky bet in correction mode but pullback move is also on therefore long trade can be tried for pullback gains but 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 now and at the same time it is above its pullback threshold point, so 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 19550----19590 with a stop loss of 19660 or sell if it moves below 19360 with a stop loss of 19450.

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.