A TECHNICAL UPDATE ON CNX-NIFTY—22.12.2023

 

CNX-NIFTY

Open-21033.95--High—21288.35—Low—20976.80-Close-21255.05 on 21.12.2023.

Support: 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: 21260.90/21472/21487/21593/21607.05/21906/22219/22463/22478/23124.

 (Bold and underlined figures are most important)

After yesterday’s reversal it opened with a down gap today and went down further and in the process it almost filled the gap of 14.12.2023(gap point-20950) and then staged a sharp bounce back and moving up filled the today’s gap also and finally ended the day with a gain of 104.90 points. 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 (gap point 20291), so be alert, cautious and watchful.

It is still into short correction mode for its recent rise despite today’s decent bounce back as it is below its threshold point of 21398.65, please note that break below 21162.43 & 20942.78(figure may change) will push it into medium and long correction mode for its recent rise and break below 20222.45 could be an extreme alert point and then correction may further deepen and can last longer. It is in the long term uptrend and bias is positive as of now and it is still buying on decline market till it indicates otherwise. But, in view of reversal bar it made on 20.12.2023 it is suggested to exercise some restraint in buying but it can definitely be tried at critical support points. 

It is very important to mention here that  three out of five important technical indicators have turned negative on 20.12.2023 and indicates that it could drag it down to  20900 levels in coming days, which is concerning. However if it holds the level of 21122.22(figure may change) on the closing basis then the chance of up move will be alive but moving up it may face strong resistance at 21285---21358---21399---21448 & 21470 the up move can exhaust at any of these points but if it moves above 21470 and sustain on the closing basis then it could retest its all-time high of 21593 or may go beyond it. Similarly moving down its possible bounce back points could be in the range of 20942---20900 and then 20769 or earlier (it did bounce back from 20976.80 today), please note that break below 20769 may accelerate the fall. 

IMPORTANT NOTE: -- ALTHOUGH IT STAGED A BOUNCE BACK TODAY AFTER YESRTDAYS REVERSAL BUT PLEASE NOTE THAT IT WAS JUST A REACTION OF THE SHARP FALL, SO IT SEEMS THAT IT COULD STILL HEAD DOWN AGAIN THEREFORE WATCH IT FOR AT LEAST A DAY OR TWO FOR CLARITY AND CONFIRMATION THAT IT CAN RESUME THE UP MOVE AGAIN.  

TRADING TIPS:--

1. For safe traders long trade can only be tried on decline near or within the range of 21150---21122 with a stop loss of 21075. But aggressive traders can also try long trade on sharp decline near or within the range of 20950----20900 with a stop loss of 20850 or near 20769 with a stop loss of 20700.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair, but since it is into short term correction mode for its recent rise, therefore short trade can also be attempted on reasonable rise or on price breakdown for intraday corrective gains but with extreme caution and alert. Short trade can be tried on the rise near or within the range of 21450—21470 with a stop loss of 21520 or sell if it moves below 21120 with a stop loss of 21180. It could be a risky trade but worth trying.

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