A TECHNICAL UPDATE ON CNX-NIFTY—12.9.2023

 

CNX-NIFTY

 Open-19890---High—20008.15-Low-19865.35--Close-19996.35 on 11.9.2023.

Support: 19991.85/19887.40/19867.55/19795.60/ 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: 20168/20201/20285/20390/20467/20568/20752/21235.

 (Bold and underlined figures are most important)

It continued the up move for the 7^th day in a row and hit a new all-time high of 20008.15 and closed near the high of the day with a gain of 176.40 points. It is exhibiting extraordinary strength for the continuation of the up move but strait rise makes it vulnerable for correction also. It is out of all corrective modes now, but if it closes below 19823(figure may change) then it will slip again into short correction mode for its recent rise, which please note. The technical setup is strong 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. The long term trend is up.

Moving up from here it may face resistance at 20050---20168---20201---20260---20285---20390---20467(figure may change), Please note that it may correct at any of these points and then may resume the up move again.

Kindly note that moving down from here its strong support points would be 19991.80---19838---19823, break below these points are alert points but as long as it holds the range of 19725---19600(range will change every day) on the closing basis up move is likely to continue, break below 19500 could be concerning and may end the possibility of continuation of the up move for the time being 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 20010 and maintain for some time with a short stop loss of 19950 or on decline near 19850 with a short stop loss of 19800 or on sharp decline near or within the range of 19700----19600 with a stop loss of 19550.

2. It is into the long term uptrend therefore short trade in general could be a risky affair, however short trade can be attempted but with extreme caution and care 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 20120----20140 with a stop loss of 20190. 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.