A TECHNICAL UPDATE ON CNX-NIFTY—25.8.2023

 

CNX-NIFTY

 Open-19535.15--High—19584.45-Low-19369--Close-19386.70 on 24.8.2023.

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

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

 (Bold and underlined figures are most important)

It opened with an up gap and went up further but could not sustain at the higher level and later in the day plunged down sharply and finally ended the day near the low of the day with a loss of 57.30 points. It is already into corrective mode, furthermore it closed below its important point of 19506.37 & 19428(figure may change) which is its correction threshold point for its immediate rise and the pullback threshold point respectively. The short term technical setup is also weak therefore likely to move down from here, but despite today’s volatility and weak price movement some important technical indicators has given positive signal today and some are pointing that they may turn positive in coming days. Therefore it seems that till it holds its critical range of 19303---19245 on the closing basis then the chances of going down further looks bleak and chances of moving up from here looks bright despite all odds. But please note that for the steady up movement it has to moves above 19483---19570 & 19646(figure may change) and sustain on the closing basis, else it may move in the range before either side breakout happens. The short term bias is down as of now but the long term uptrend is still intact.

Moving down further from here its support points could be at 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 the range of 19303.60---19253.60---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 18650(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 19428---19458---19483---19506.37----19536—19553----19567---19623---19645.50---19710---19818---19844(figure may change), Please note that if it moves above 19428 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 it may get into steady up movement again if it moves above 19645.50 and sustain on the closing basis.

TRADING TIPS:--

1. Long trade can be tried if it moves above 19428 and maintain for some time  with a stop loss of 19360 or can buy on decline near or within the range of 19310----19253 but not below this with a stop loss of 19220. Please note that long trade could be a risky bet in correction mode but can be tried at proper points or range 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 19550----19590 with a stop loss of 19650 or sell if it moves below 19360 with a stop loss of 19430. It could be a risky trade mind you.

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.