A TECHNICAL UPDATE ON CNX-NIFTY—18.9.2023

 

CNX-NIFTY

 Open-20156.45---High—20222.45-Low-20129.70--Close-20192.35 on 15.9.2023.

Support: 20184/ 20168/19991.85/19901/19887.40/19867.55/19795.60/ 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:20201/20222.45/20245/20285/20390/20467/20500/20568/20760.

 (Bold and underlined figures are most important)

It opened on a positive note and moved up further and hit a new all-time high of 20222.45 and finally ended the day with a gain of 89.25 points. It is exhibiting good strength for the continuation of the up move. It is important to mention here that if it closes below 19986.73(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 except for one all the important technical indicators are positive on the daily, weekly & monthly chart and price action is also positive, therefore the on-going up move is likely to continue further with intermittent correction, but please note that one weak indicator could be concerning and can dampen the up move and can get it into deep correction if price action weakens. It is therefore suggested to keep an eye on the price action and if it gives weak sign then be alert but as of now it is pretty strong, which please note. The long term trend is up.

Moving up from here it may face resistance at 20201---20222.45---20245---20285---20315---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. The range of 20245---20285---20315 is very critical, so be alert and vigilant.

Kindly note that moving down from here its strong support points would be 19991.80 &19986.73, break and sustained close below 19991.80 will be an alert sign, break below 19967 will push it into short correction mode 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 19640 could be concerning and may dampen the possibility of continuation of the up move for the time being and break below 19421 will push it into medium term corrective mode and it may slide down further and then the next strong support range would be between 19300—19253---19223.60.

TRADING TIPS:--

1. Safe traders can try long trade if it moves above 20223 and maintain for some time with a stop loss of 20160 or on decline near 19994 with a stop loss of 19950.  But aggressive traders can also try long trade on sharp decline near 19870 with a stop loss of 19780. It is important to mention here that long trade below 19993 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 20285----20310 with a stop loss of 20350 or sell if it does not move above 20222.45 even intraday in first hour of trade near it with a short stop loss of 20265.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.