A TECHNICAL UPDATE ON CNX-NIFTY—28.9.2023

 

CNX-NIFTY

 Open-19637.05---High—19730.70--Low-19554--Close-19716.45 on 27.9.2023.

Support: 19657.50/19645.50/ 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 on a negative note and then moved down further but in 2^nd half it sharply bounced back and finally ended the day with a gain of 51.75 points. It is already into short term correction mode for its recent rise. It is below some of its short and medium term moving averages on the daily chart which is a weak sign and indicates that further fall may be ahead with in between short relief rallies. But the good point is that it just closed above its pullback threshold point of 19712(figure may change) and if it hold this point on the closing basis up move can extend, else it may resume the down move again. Please note that to get into strong up momentum track it has to close above 19838 & 19991.85 and then above 20089(this figure may change) and sustain on the closing basis. The short term technical setup has weakened, furthermore on the daily chart all the five important indicators are negative now therefore down move is likely to continue, few indicators on the weekly and monthly chart are also showing weakness as of now. Please note that weak indicators with weak price action are a deadly combination and it can pull it down sharply and the price action has been weak since 18.9.2023 but today it showed marked improvement it did breached previous day’s low during the day but closed above previous day’s high which is a positive sign and hopefully it can continue the up move on 28.9.2023 too. It is therefore suggested to keep an eye on the price action and look for higher highs & lows then the trend could reverse, else down move can resume, so watch out price action. 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---19841---19888---19967---19986.73---19991.85---20065----20089---20201---20222.45(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 also.

Kindly note that moving down from here its strong support points would be 19712----19657.50---19605---19451---19421(figure may change) close below 19712 may dampen the possibility of a pullback up move, break and close below 19657.50 could be a weak sign and 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—19255---19234---19223.60.

IMPORTANT NOTE: - It is into short correction mode now, therefore it is sell on the rise market now till it closes above 19991.85 and sustain, but pullback mode is on today so be alert and careful in the short trade because if it holds 19712 then the up move can extend. Please note that long trade could be risky affair till correction is on but can be tried intraday at critical support points for pullback gains only. Long trade below 19657.50 could be a risky bet for the day.

TRADING TIPS:--

1. Long trade can be tried if it moves above 19731 and maintain for some time with a stop loss of 19650.  

2. It is into the long term uptrend therefore short trade in general could be a risky affair, but it is into correction mode now but pullback mode is on, 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 19850---19880 with a stop loss of 19930 or sell if it moves below 19650 with a stop loss of 19720.

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. 

 for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.

 Email--- suranank@gmail.com