A TECHNICAL UPDATE ON CNX-NIFTY—14.12.2023

 

CNX-NIFTY

Open-20929.75--High—20950-Low—20769.50--Close-20926.35 on 13.12.2023.

Support: 20914.75/20751/20719/20599/20568.60/20475/20390/20291.55/20222.45/19991.85/19946/19875.25/19867.55/19849.75/19667/19645.50/19635.30/19627/19584.45/19523.40/19492.10/19480/19333.60/19329.10/19296.45/19253.60/19223.65/19204.85/18973.30/18887.60/18837.85.

Resistance: 21037.90/21050/21078/21260.90/21487/21607.05/22219/22463.

 (Bold and underlined figures are most important)

It opened on a positive note and had both side swings during the day and finally ended the day with a meager gain of 19.95 points. After yesterdays down move it closed on a positive note today but the price action has been weak for the last two days and if it does not stage a sharp recovery in a day or two then it may head down again, which please note. However as long as it holds the key points as mentioned below the hope of resuming strong up move will be alive. It is important to mention here that the gap filling threat on the daily chart is fading out but it is still looming on the weekly chart, so be alert and 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 yesterday, 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, in fact it is  showing distinct negative divergence on the daily chart which is slightly concerning and it seems that it may still get into down move again, however the other parameters are still good 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 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 20914.75----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. It did went below the aforesaid points intraday today but finally managed to close above these points ,which shows underline strength in it but at the same time it is dicey also. So be alert.

TRADING TIPS:--

1. Long trade can be tried if it maintains above today’s close 20926.35 for some time with a stop loss of 20840. But aggressive traders can also try long trade on the sharp decline near 20740 with a stop loss of 20690.

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 21060—21080 with a stop loss of 21120.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