A TECHNICAL UPDATE ON CNX-NIFTY—11.10.2023

 

CNX-NIFTY

 Open-19565.60---High—19717.80--Low-19565.45--Close-19689.85 on 10.10.2023.

Support:  19657.50/19645.50/19638.30/19622.40/19615.95/19584.45/19563.10/19544// 19492.10/19482.75/19467.50/19465/19458.55/ 19421/19405/19361.75/19333.60/ 19303.60/19300/19296.45/19253.60/19223.65/18887.60/18646.70/18555.40/18464.55

Resistance: / 19544/19563.10/19584.45/19615.95/19622.40/19638.30/19645.50/19657.50/ 19795.60/19867.55/19887.40/19901/19986.73/ 19991.85/20168/20184/20201/20222.45.

 (Bold and underlined figures are most important)

It opened on a positive note and steadily moved up and finally ended the day with a handsome gain of 177.50 points. It is still into short term correction mode for its recent rise. It is still below some of its short and medium term moving averages on the daily chart despite today’s rise which is still concerning. But the good point is that it has made higher bottom & top on the bar & line chart, which is a huge positive sign. Furthermore it is well above its meaningful pullback threshold points of 19544(figure may change) and as long as it hold this level on the closing basis chances of up move will be alive and up move can extend. But to get into the strong up momentum track it has to close above 19778---19991.85 & 20045(this figure may change) and sustain on the closing basis. The short term technical setup has improved a bit, furthermore on the daily chart two out of five important indicators are positive now therefore chance up move extension looks promising, but few indicators on the weekly and monthly chart are negative as of now. Please note that weak indicators with weak price action are a deadly combination and it can pull it down  and the price action has been weak since 18.9.2023, but today’s price action was very strong, which is a positive sign. It is therefore suggested to keep an eye on the price action and if the positive price action continues for the next 2-3 days in a row then the trend may reverse, else it may resume the down move again, 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 19767---19778---19780---19883---19986.73---19991.85---20013----20045---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. So be watchful. Please note that if it holds 19680 and sustain on the closing basis then the rally may extend to 19767---19778(figure may change) and if it closes above 19778 and sustain then it may gain good strength and may put it  on the steady  up momentum track again. It is important to mention here that a sustained close above 20045 will possibly ensure that it could retest its all-time high of 20222.45 or may go beyond it also.  

Kindly note that moving down from here its strong support points would be 19638.30---19622.40---19544---19512.35---19480.50---19421(figure may change) break below 19638.30 & 19622.40 will be an alert sign, break below 19544 & 19512.35  may end the possibility of pullback up move, break below 19480.50 may accelerate fall, 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 showing some sign of improvement and making higher to & bottom on the line & bar chart, therefore likely to move up further from here, so buy on decline strategy can be adopted now till it breaks 19512 & 19480.  

TRADING TIPS:--

1. Long trade can be tried if it holds 19680 for some time with a stop loss of 19640 or buy if it moves above 19718 with a stop loss of 19640 or can buy on decline near or within the range of 19544--19520 with a stop loss of 19470.  

2. It is into the long term uptrend therefore short trade in general could be a risky affair, but it is in correction mode and pullback mode is also on , even then 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 sell if it moves below 19615 with a stop loss of 19680.

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