A TECHNICAL UPDATE ON CNX-NIFTY—15.9.2023

 

CNX-NIFTY

 Open-20127.95---High—20167.65-Low-20043.45--Close-20103.10 on 14.9.2023.

Support: 19991.85/19901/19887.40/19867.55/19795.60/ 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: 20168/20184/20201/20245/20285/20390/20467/20500/20568/20760.

 (Bold and underlined figures are most important)

It opened with an up gap and went further up but could not sustain at the upper level and gradually moved down but finally ended the day with a gain of 33.10 points. It is exhibiting good strength for the continuation of the up move. It is important to mention here that if it closes below 19944.87(figure may change) then it will slip 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 continue 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 good as of now. The long term trend is up.

Moving up from here it may face resistance at 20168---20184---20245---20285---20390---20467---20500---20567---20760(figure may change), Please note that it may correct at any of these points and then may resume the up move again or rally may exhaust for a while. So be alert and vigilant.

Kindly note that moving down from here its strong support points would be 19991.80 &19944.87, break and sustained close below 19991.80 will be an alert sign, break below 19944.87 will push it into short correction for its recent rise but as long as it holds the level of  19838(figure may change) on the closing basis the up move is likely to continue, break below 19600 could be concerning and may dampen the possibility of continuation of the up move for the time being and it may start to 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 on decline near 19994 with a stop loss of 19930 or if it maintains above 20103.10 for some time with a stop loss of 20040(it could be a risky trade). It is important to mention here that long trade below 19994 could be a risky bet for the day.

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 20200----20225 with a stop loss of 20280 or sell if it moves below 19944 with a stop loss of 20010.It could be a risky trade.

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.