A TECHNICAL UPDATE ON CNX-NIFTY—6.10.2023

 

CNX-NIFTY

 Open-19521.85---High—19576.95--Low-19487.30--Close-19545.75 on 5.10.2023.

Support: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: 19563.10/19584.45/19615.95/ /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 with an up gap and went up further and finally ended the day with a gain of 109.65 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 and below some short term averages on the weekly chart also 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 today it has closed above its short & meaningful pullback threshold points of 19436 & 19544(figure may change) and if it holds these points on the closing basis then this up move can extend, else it may resume down move again. But to get into strong up momentum track it has to close above 19639—19790---19991.85 & 20045(this figure may change) and sustain on the closing basis. The short term technical setup is weak, 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 negative 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 price action was positive, which is a good sign. It is therefore suggested to keep an eye on the price action and if positive price action continues for the next 2-3 days in a row then the trend may reverse, else down move may resume 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 19550---19601---19673---19680---19778---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.

Kindly note that moving down from here its strong support points would be 19544---19436---19421(figure may change) break below 19544 & 19436 may end the pullback up move,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(it bounced near this point on 4.10.2023)—19255---19234---19223.60. It is important to mention here that sustained break below 19223.60 on the closing basis will trigger fresh fall and it may witness an accelerated down move and most importantly it could be trend threatening also, which may please be noted.

IMPORTANT NOTE: - It is into short correction mode, therefore it is sell on the rise market now till it closes above 19991.85 and sustain. 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. It can get out of correction once it closes above 19986.73 and sustain. Long trade below 19487 could be a risky bet for the day.

TRADING TIPS:--

1. For safe traders long trade can be tried if it moves above 19577 and maintain for some time with a stop loss of 19515 and avoid long trade on decline. But aggressive traders can also try long trade on decline near 19440 with a stop loss of 19400 or on sharp decline near or within the range of 19300---19230 with a stop loss of 19180.  

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 today, 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 19650---19690 with a stop loss of 19730 or sell if it moves below19487 with a stop loss of 19550.

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