A TECHNICAL UPDATE ON CNX-NIFTY—7.9.2023

 

CNX-NIFTY

 Open-19581.20---High—19636.45-Low-19491.50--Close-19611.05 on 6.9.2023.

Support: 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: 19615.95/19645.50/19795.60/19867.55/19887.40/19991.85.

 (Bold and underlined figures are most important)

It continued the up move for the 4^th day in a row and ended the day near the high of the day with a gain of 36.15 points is a good sign. It is still into short & medium term corrective mode for the earlier gain. The technical setup has improved, furthermore all the important technical indicators are positive on the daily chart therefore the on-going up move is likely to extend further with intermittent correction, but on the weekly chart few indicators are giving weak signal and indicate that the up move may extend for few days but may not last longer and eventually head down, therefore it is suggested that irrespective of indicators weak signal on the weekly chart please give prime importance to price action because if price action weakens then only the indicators weakness will come into play and if price action remains strong then the weekly indicators can turn positive also in coming days, which please note and the price action is o.k. as of now. Kindly note that as long as it holds 19405(figure may change) on the closing basis chances of up move will always be alive but if it breaks it and sustain then it could be concerning and then the next strong support range would be between 19300—19253---19245---19223.60. Please note that for the steady up movement it has to moves above 19645.50(figure may change) and sustain on the closing basis. The short and medium term bias is down as of now but the long term uptrend is still intact.

Moving up from here it may face resistance at 19645.50---19698---19796---19811---19838---19887.40---19991.85(figure may change), Please note that it may correct at any of these points and may resume the up move again or it rally may fizzle out also at any of these points. It will face very stiff resistance at 19698---19811 & 19838 and rally can potentially fizzle out at any of these points, but if it moves above 19838 and sustain then it could retest its all-time high of 19991.85 or may go beyond it and scale new highs.

Moving down from here its support points could be at 19608----19585—19539---19517---19483---18458.55---19453---19405---19365---19338---19303---19296---19253.60---19245----19229.70---19223.65---18887.60--18742(figures may change), it may bounce back from any of these points and resume the up move again or may slide down also. It is already into correction mode and break below each support point will weaken it further, break below 19405 will be an alert point to exit long trade, break below the range of 19253.60---19245----19223.65, will push it into deep and long term corrective mode and will trigger fresh fall, break below 18887.60 may accelerate the fall and finally break below 18742(figure will change every day) will threaten the long term uptrend which may please be noted. 

TRADING TIPS:--

1. Long trade can be tried if it moves above 19648 and maintain for some time with a short stop loss of 19570 or on decline near or within the range of 19480----19450 with a stop loss of 19380. Please note that long trade could be a risky bet in correction mode but pullback move is on so it can be tried at critical support points for the pullback gains with extreme alert and caution.

2. It is still in the long term uptrend therefore short trade in general could be a risky affair but as it is still into correction mode but pullback move is also on , therefore short trade can be attempted but with extreme caution 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 19740----19760 with a stop loss of 19820.

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.