A TECHNICAL UPDATE ON CNX-NIFTY—4.12.2023

 

CNX-NIFTY

Open-20194.10---High—20291.55--Low-20183.70--Close-20267.90 on 24.11.2023.

Support: 20222.45/19991.85/19946/19875.25/19867.55/19849.75/19667/ 19645.50/19635.30/19627/19584.45/19523.40/19492.10/19480/19333.60/19329.10/19296.45/19253.60/19223.65/19204.85/18973.30/18887.60/18837.85/18646.70/18604.45/18555.40/18464.55/18350.95/18131.70/18114.65/18105.30/18042/17992.20/17959/17824/17774.25/17761.85/17553.95.

Resistance: 20291.55/20390/20475/20568.60/20599/20751/20914.75/21078/21260.90/21487/21607.05.

 (Bold and underlined figures are most important)

It has been exhibiting extra ordinary strength in the last couple of days and hit a new all-time high of 20291.55 today; it is in the new territory now therefore it is good for the continuation of the up move but with caution, because in new territory possibility of correction is very imminent and it can happen any movement, so keep a watch on the price action. Please note that for the continuation of the up move it has to remain above 20222.45 on the closing basis, break below it could be an alert point, break below 20168 & 19948.48(figure may change) will push it into very short & deep short correction for its recent rise. It is in the long term uptrend and bias is bullish as of now. 

It is important to mention here that four out of five important technical indicators on the daily chart are positive now therefore the on-going up move can extend further provided it holds the key support range as mentioned above, furthermore despite the robust rise still three out of five indicators on the weekly chart and one out of five indicators on the monthly chart are negative, which is concerning and indicates that after the on-going up move exhaustion it may still witness deep fall in coming weeks/months. But as long as price action remains positive there is no major threat and up move can extend with intermittent correction.

Moving up from here it may face resistance at 20291.55---20390---20475---20568.60---20599---20751---20914.75 (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 20222.45---20168---19991.85---19948.48---19875.25----19849.75(figure may change) it may bounce back from any of these points, break below these points could be concerning and can drag it down further, which please note.

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 20194---20160 with a stop loss of 20110 or if it move above 20291.55 and maintains above it for some time with a stop loss of 20250. But aggressive traders can also try long trade on the sharp decline near or within the range of 19950--- 19850 with a stop loss of 19780. Please note that long trade below 20183 could be a risky affair for the day.

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 20370—20390 with a stop loss of 20430.

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