A TECHNICAL UPDATE ON CNX-NIFTY—20.9.2023

 

CNX-NIFTY

 Open-20155.95---High—20195.35--Low-20115.70--Close-20133.30 on 18.9.2023.

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: 20168/20184/20201/20222.45/20245/20285/20390/20467/20500/20568/20760.

 (Bold and underlined figures are most important)

It opened on a negative note and moved both ways during the day but in a range and eventually closed near the low of the day with a loss of 59.05 points. It corrected today which was quite normal and the technical setup is still good for the continuation of the up move, but if correction last for few days which seems possible and if it closes below 19993 then it may halt the on-going up move for a while and may slide down further. Furthermore 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 good, furthermore except for one all the important technical indicators are positive on the daily, weekly & monthly chart, 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 and today price action was weak as it made lower low and lower high, which please note and watch out next 1-2 trading session for clarity. 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 20222.45---20245---20285---20315 is very critical, so be alert and vigilant.

Kindly note that moving down from here its strong support points would be 19993---19991.80 &19986.73, break and sustained close below 19993 &19991.80 will be a weak sign for the ongoing up move, break below 19986.73 will push it into short correction mode for its recent rise and may accelerate the fall but as long as it holds the level of  19865(figure may change) on the closing basis the hope of  continuation of up move will be alive, break below 19680 could be very concerning and fall may deepen 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 on decline near 19993 with a stop loss of 19940.  But aggressive traders can also try long trade on sharp decline near 19870 with a stop loss of 19810. It is important to mention here that long trade below 19993 & 19986.73 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 20222----20245 with a stop loss of 20295.

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.