A TECHNICAL UPDATE ON CNX-NIFTY—21.9.2023

 

CNX-NIFTY

 Open-19980.75---High—20050.65--Low-19878.85--Close-19901.40 on 20.9.2023.

Support: 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:19986.73/ 19991.85/20168/20184/20201/20222.45/20245/20285/20390/20467/20500/20568/20760.

 (Bold and underlined figures are most important)

It opened with a huge down gap and recovered a bit but could not sustain and steadily moved down and finally ended the day with a loss of 231.90 points. Please note that as envisaged the down move continued and it slipped into short term correction mode today as it closed below its threshold point of 19986.73(figure may change) the way it got corrected today is highly concerning and if it does not stage a sharp bounce back in next 3-4 trading sessions and moves above 19991.85 and sustain on the closing basis then the correction may extend further. Furthermore it has also moved below some of its short term moving averages and broken recent bottom on the line chart, which is a very weak sign and indicates further downside may be ahead. However, if it manages to hold 19838 on the closing basis then it could still stage a pullback, else down move may continue. The technical setup still looks good, furthermore except for one all the important technical indicators are positive on the daily, weekly & monthly chart despite today’s fall, therefore the up move can still  resume, but please note that one weak indicator could be concerning and can dampen the up move and can get it into corrective mode if price action weakens. The price action has weakened since 18.9.2023 and today it was terribly bad and slipped into corrective mode also. It is therefore suggested to keep an eye on the price action and if it does not improve in next 3-4 trading sessions then further downside is open. It is into short correction mode now but the long term trend is up.

Moving up from here it may face resistance at 19986.73---19991.85---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. It seems that rally has exhausted for now and to put it back on the track it has to close above 19991.85 and sustain on the closing basis.

Kindly note that moving down from here its strong support points would be 19838---19675---19421(figure may change) break below 19838 on the closing basis could lessen the possibility of continuation of the up move, break below 19675 could be very concerning and fall may deepen and break below 19421 will push it into deep medium term corrective mode and it may slide down further and then the next strong support range would be between 19300—19253---19223.60.

IMPORTANT NOTE: - It has slipped into correction mode today, therefore it is sell on the rise market now till it closes above 19991.85 and sustain, therefore long trade could be risky till correction is on but it can be tried at critical support points for pullback gains. Long trade below19865 & 19838 could be a risky bet for the day.

TRADING TIPS:--

1. Safe traders can try long trade on decline if it holds 19838 for a while but not below it with a stop loss of 19790.  But aggressive traders can also try long trade on sharp decline near 19710 with a stop loss of 19670.It could be a risky affair.

2. It is into the long term uptrend therefore short trade in general could be a risky affair, but it has slipped into correction today, therefore 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 19990----20030 with a stop loss of 20080 or if it moves below19838 with a stop loss of 19910.

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.