A TECHNICAL UPDATE ON CNX-NIFTY—20.12.2023

 

CNX-NIFTY

Open-21477.65--High—21505.05-Low—21337.75-Close-21453.10 on 19.12.2023.

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:21472/21487/21492.30/21607.05/21906/22219/22463/22478/23124.

 (Bold and underlined figures are most important)

It opened on a positive note and had both side move during the day and hit yet another new all-time high of 21505.05 and finally ended the day with a gain/loss of 34.45 points. Please note that the gap it created on 15.12.2023 and 14.12.2023 is still there and if it makes an effort to fill the gap of 15.12.2023 in next 1-2 trading sessions and the gap of 14.12.2023 in next 1 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 the 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 good strength therefore it is likely to continue the up move further. But please note that in between short breather/correction will happen during the continuation of the up move, it took a breather yesterday and in the recent past also but had up move today and possibly may resume the steady up move , but break below 21331.46---21095.24 & 20875.59(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/ correction. 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: -- ALTHOUGH IT IS EXHIBITING GOOD STRENGTH IN THE UP MOVE BUT THE ON-GOING WEEK IS THE EIGHTH STARIT WEEK OF RISE WHICH IS VERY CRITICAL AND MAY BE VULNERABLE FOR A STRONG CORRECTION, FURTHERMORE IT HAS BEEN  VERTICALLY MOVING UP FOR LAST SO MANY DAYS WITH JUST SMALL BREATHER AND NOT A MEANINGFUL CORRECTION,SO PLEASE NOTE THAT THE  VERTICAL RISE MAY HAVE A 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. SINCE IT IS IN THE STRONG UP MOVE CORRECTION MAY BE DELAYED BY A WEEK OR SO BUT IT SEEMS INEVITABLE. THE LONG TERM TREND IS HIGHLY BULLISH AS OF NOW; THEREFORE IT IS BUYING ON DECLINE MARKET TILL IT INDICATES OTHERWISE.

TRADING TIPS:--

1. For safe traders long trade can be tried if it moves above 21506 and maintain for some time with a stop loss of 21430 avoid buy on decline for the day. But aggressive traders can also try long trade if it moves above 21460 and maintain for some time with a stop loss of 21405 or of decline 21331 with a stop loss of 21280.

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 21600—21620 with a stop loss of 21660.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