A TECHNICAL UPDATE ON CNX-NIFTY—22.9.2023

 

CNX-NIFTY

 Open-19840.55---High—19848.75--Low-19709.95--Close-19742.35 on 21.9.2023.

Support: 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: 19795.60/19867.55/19887.40/19901/19986.73/ 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 down gap for the 2^nd day in a row and steadily moved down and finally ended the day with a loss of 159.05 points. It witnessed sharp fall in the last two days this is showing gross weakness in it and indicates that further fall may be ahead. It is already into short term correction mode for its recent gains. It is below some of its short term moving averages on the daily chart and below its recent bottom on the line chart also which is concerning and if it does not stage a sharp bounce back in next 2-3 trading sessions and moves above 19838 & 19991.85 and sustain on the closing basis then it may not resume the up move again and correction is likely to continue. However, if it manages to hold 19680 (figure will change every day) on the closing basis then there is some hope that it could  stage a pullback rally, else down move may continue. The short term technical setup has weakened a bit, furthermore on the daily chart two out of five important indicators are negative now and if price action does not improve fast others indicators may also turn negative, on the weekly and monthly chart also one indicator is showing weakness as of now. Please note that weak indicators with weak price action can be disastrous. The price action weakened on 18.9.2023 and it created havoc in the market in the last two days. It is therefore suggested to keep an eye on the price action and if it does not improve in next 2-3 trading sessions then further downside is wide open. It is into short correction mode now but the long term trend is up.

Moving up from here it may face resistance at 19811---19838---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. But it seems that up rally has exhausted for now and to put it back on the up momentum track it has to close above 19838 & 19991.85 and sustain on the closing basis.

Kindly note that moving down from here its strong support points would be 19680---19421(figure may change) break and close below 19680 could be very concerning and then fall may accelerate 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 is into short correction mode now, therefore it is sell on the rise market now till it closes above 19838 & 19991.85 and sustain, therefore long trade could be risky thing till correction is on but it can be tried at critical support points for pullback gains. Long trade below 19680 could be a risky bet for the day.

TRADING TIPS:--

1. Safe traders should avoid long trade till correction completion sign emerges or it closes above 19838 at least.  But aggressive traders can try long trade if it holds 19680 levels with a stop loss of 19640.

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 19830----19850 with a stop loss of 19890 or if it moves below19680 with a stop loss of 19750.

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.