A TECHNICAL UPDATE ON CNX-NIFTY—11.9.2023

 

CNX-NIFTY

 Open-19774.80---High—19867.15-Low-19727.05--Close-19819.95 on 8.9.2023.

Support: 19795.60/ 19645.50/ 19615.95/19584.45/19563.10/19523.60/19482.75/19467.50/19465/19458.55/19405/19361.75/ 19303.60/19300/19296.45/19253.60/19245/19223.65/18887.60/18646.70/18555.40/18464.55.

Resistance: 19867.55/19887.40/19991.85/20168/20201/20285/20390/20467/20752/21235.

 (Bold and underlined figures are most important)

It continued the up move for the 6^th day in a row and ended the day with a gain of 92.90 points, which is a good sign, but strait rise makes it vulnerable for correction also. It is still into corrective mode for the earlier gain and can get out of all corrective modes if it moves above 19830 and sustain on the closing basis, but if it closes below 19715.28(figure may change) then it will slip into short correction mode for its very recent rise, which please note. The technical setup is good now, furthermore all the important technical indicators are positive on the daily chart therefore the on-going up move is likely to extend further with intermittent correction, but on the weekly chart few indicators are giving weak signal and indicate that the up move may extend for few days but may not last longer and eventually head down, therefore it is suggested that irrespective of indicators weak signal on the weekly chart please give prime importance to price action because if price action weakens then only the indicators weakness will come into play and if price action remains strong then the weekly indicators can turn positive also in coming weeks, which please note and the price action is very strong as of now. It seems that it has gotten into steady up momentum track now. The long term trend is up.

Moving up from here it may face resistance at 19838---18867.55---19887.40---19991.85---20050---20168---20201---20260---20285---20390---20467(figure may change), Please note that it may correct at any of these points and may resume the up move again. It will face very stiff resistance at 19838 and rally may fizzle out also at this point, but if it moves above it and sustains on the closing basis then it could retest its all-time high of 19991.85 or may go beyond it also and scale new highs.

Kindly note that moving down as long as it holds the range of 19580---19510(range will change every day) on the closing basis up move is likely to continue, break below 19441 could be concerning and finally break below 19405(figure may change) on the closing basis may end the possibility of continuation of the up move and it may slide down and then the next strong support range would be between 19300—19253---19245---19223.60.

TRADING TIPS:--

1. Long trade can be tried if it moves above 19868 and maintain for some time with a short stop loss of 19800 or on decline near 19725 with a short stop loss of 19680 or on sharp decline near or within the range of 19580----19510 with a stop loss of 19450. Please note that long trade could be a risky bet in correction mode but strong pullback move is on so it can be tried at critical support points for the pullback gains with extreme alert and caution.

2. It is into the long term uptrend therefore short trade in general could be a risky affair but as it is still into correction mode but pullback move is also on , therefore short trade can be attempted but with extreme 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 19960----19980 with a stop loss of 20030. 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.