A TECHNICAL UPDATE ON CNX-NIFTY—18.12.2023

 

CNX-NIFTY

Open-21287.45--High—21492.30-Low—21235.30--Close-21456.65 on 15.12.2023.

Support:21260.90/21078/21050/21037.90/20914.75/20751/20719/20599/20568.60/20475/20390/20291.55/20222.45/19991.85/19946/19875.25/19867.55/19849.75/19667/19645.50/19635.30/19627/19584.45/19523.40/19492.10/19480/19333.60/19329.10/19296.45/19253.60/19223.65/19204.85/18973.30/18887.60/18837.85.

Resistance:21472/21487/21607.05/21906/22219/22463/22478/23124.

 (Bold and underlined figures are most important)

It opened with an up gap for the 2^nd day in a row and hit yet another all-time high of 21492.30 and finally ended the day with a gain of 273.95 points. Please note that the gap it created today and on 14.12.2023 is still there and if it makes an effort to fill the today’s gap in next 3-4 trading sessions and the gap of 14.12.2023 in next 2-3 trading sessions, which is technically possible then it can come down to 21210.90 & 20950 and if it does not fill the gaps in stipulated time then chances of filling the gap will recede. It is important to mention here that for the earlier gaps, the gap filling threat on the daily chart had faded out but it is still looming on the weekly chart, so be alert and cautiously ride the on-going rise.

It is in the new territory and exhibiting extra ordinary strength and hitting new high every other day therefore it is likely to continue the up move further for sure. But please note that in between short breather will happen during the continuation of the up move, which happened recently, but break below 21321.72---21085.50 & 20865.85(figure may change) will push it into very short, medium and long correction mode for its recent rise and break below 20222.45 could be an extreme alert point and then correction may deepen and 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 all the important technical indicators are positive on the daily, weekly and monthly chart now, which is a very positive sign and confirms that the up move will continue with intermittent breather. 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 it may get into good correction. 

Moving up from here it may face resistance at 21472----21487—21607.05---21906 (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 21260.90---21235---21210.90---21140----21111---21078----20984----20950----20914.75----20769.50-----20568.60---20507.75---20390---20291.55---20222.45(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: -- IT IS EXHIBITING EXTRA ORDINARY STRENGTH AND IN NEW ZONE, BUT THE ONLY CONCERN IS THAT IT IS VERTICALLY MOVING UP AND VERTICAL RISE MAY HAVE VERTICAL FALL TOO AT TIMES, THEREFORE IT IS SUGGESTED TO RIDE THE ON-GOING RISE WITH EXTREME CAUTION AND ALERT BECAUSE EVEN IF IT GET INTO NORMAL CORRECTION IT COULD BE UPSETING FOR A WHILE. PLEASE NOTE THAT WHATEVER IN BETWEEN DOWN MOVE IT HAD IN LAST FEW DAYS WAS JUST A BREATHER AND NOT A REAL CORRECTION. THE LONG TERM TREND IS HIGHLY BULLISH AS OF NOW.

TRADING TIPS:--

1. Long trade can be tried if it moves above 21493 and maintain for some time with a stop loss of 21430 or on decline near or within the range of 21320---21265 with a stop loss of 21200.But aggressive traders can also try long trade on the sharp decline near or within the range of 20950----20900 with a stop loss of 20830.

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 21700—21720 with a stop loss of 21770.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