A TECHNICAL UPDATE ON CNX-NIFTY—26.12.2023

 

CNX-NIFTY

Open-21295.85--High—21390.50—Low—21232.45-Close-21349.40 on 22.12.2023.

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

 (Bold and underlined figures are most important)

It opened on a positive note and went up further and then had both side movement during the day and finally ended the day with a gain of 94.35 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 last two days bounce back as it is still 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 with proper stop loss only. 

It is very important to mention here that  three out of five important technical indicators are negative now 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, else it could head down again, but moving up it may face strong resistance at 21358---21399---21448 & 21470(figure may change) and 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 also. Similarly moving down its good support or bounce back points could be at 21285---21261---21212---21122 (figure may change) and the strongest bounce back points could be in the range of 20942---20900 and then 20769 or earlier, please note that break below 20769 may accelerate the fall.

IMPORTANT NOTE: -- THE RANGE FOR IT IS BETWEEN 21122---21470 NOW AND SUSTAINED BREAKOUT ON THE EITHER SIDE WILL DECIDE THE FURTHER DIRECTION FOR IT. NEEDLESS TO MENTIONE HERE IS THAT IT IS IN THE LONG TERM UPTREND AS OF NOW.

TRADING TIPS:--

1. For safe traders long trade can only be tried on decline near or within the range of 21190---21150 with a stop loss of 21100. 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 21440—21460 with a stop loss of 21500.

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