A TECHNICAL UPDATE ON CNX-NIFTY—13.12.2023

 

CNX-NIFTY

Open-21018.55--High—21037.90-Low—20867.15--Close-20906.40 on 12.12.2023.

Support:20751/20719/20599/20568.60/20475/20390/20291.55/20222.45/19991.85/19946/19875.25/19867.55/19849.75/19667/19645.50/19635.30/19627/19584.45/19523.40/19492.10/19480/19333.60/19329.10/19296.45/19253.60/19223.65/19204.85/18973.30/18887.60/18837.85.

Resistance:20914.75/21050/21078/21260.90/21487/21607.05/22219/22463.

 (Bold and underlined figures are most important)

It opened on a positive note and hit yet another new all-time high of 21037.90 and then started slipping down and finally ended the day with a loss of 90.70 points. It reasonably corrected today but it closed below the low of the previous day after so many days, which is slightly concerning and indicates that correction may extend if it does not stage a bounce back in a day or two, however it is still above its key points as mentioned below, so the up move hope is still there. Furthermore the gap filling threat on the daily chart is fading out but it is still looming on the weekly chart, so be watchful. 

It is in the new territory and exhibiting good strength therefore likely to extend the up move further. But please note that in between short correction will happen during the continuation of the up move, as it happened today, but break below 20738.33 20518.69(figure may change) will push it into very short and deep short correction mode for its recent rise and break below 20222.45 could be an alert point and correction may deepen and then it can last longer. It is in the long term uptrend and bias is bullish as of now and it is buying on decline market till it indicates otherwise. 

It is important to mention here that almost all the important technical indicators are positive now on the daily, weekly and monthly chart except for one indicator which is still slightly dicey on daily & weekly chart despite recent rise, in fact today it gave distinct negative divergence on the daily chart which is slightly concerning and it seems that the correction may extend, however the other parameters are still strong and if price action supports the indicator  may also turn positive in coming days, therefore I once again repeat that the on-going up move is likely to extend further provided it holds the key points as mentioned above, else correction may deepen. 

Moving up from here it may face resistance at 20914.75----20961.95----21037.90---21050---21078---21260.90---21487(figure may change), 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 at 20751---20719---20599---20568.60---20507.75---20482.27---20390---20291.55---20262.56----20222.45---20168---19991.85---19948.48---19875.25----19849.75(figure may change) it may bounce back from any of these points, but break below each support point could weaken it and can drag it down further, which please note.

IMPORTANT NOTE: -- Close below 20901 &20850 could be concerning and can drag it down.

TRADING TIPS:--

1. Long trade can be tried on decline in the range of 20900--- 20850 with a stop loss of 20800.  But aggressive traders can also try long trade on the sharp decline near or within the range of 20740--20680 with a stop loss of 20640.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair, but even then short trade can be attempted on reasonable rise for intraday corrective gains but with extreme caution and alert. Short trade can be tried on the rise near or within the range of 21040—21080 with a stop loss of 21040. It could be a risky trade.

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 favorable 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. 

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.Email--- suranank@gmail.com