A TECHNICAL UPDATE ON CNX-NIFTY—8.12.2023

 

CNX-NIFTY

Open-20932.40---High—20941.25-Low-20850.80--Close-20901.15 on 7.12.2023.

Support: 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: 20914.75/21078/21260.90/21487/21607.05/22219/22463.

 (Bold and underlined figures are most important)

It opened on a flat to slight negative note today and finally ended the day with a loss of 36.55 points. It is important to mention here the gap it created on 5.12.2023& 4.12.2023 is still there and if it makes an effort to fill theses gaps it may fill the gap of 5.12.2023 in next 1-2 trading session and finally the gap of 4.12.2023 in next 1 trading sessions, which is technically possible then it can come down to 20702&20291, but if it does not fill the gap in stipulated time as mentioned above then chances of filling the gap may recede for the time being. 

It is in the new territory and exhibiting good strength therefore likely to extend the up move further. It corrected today please note that after seven days of vertical rise it seems to be a below normal correction today and it may extend also but eventually it is likely to resume the up move again, but it is important to note that the break below 20680.38& 20460.66(figure may change) will push it into very short and deep short correction mode for its recent rise and break below 20222.45 could be an alert point and  correction may deepen and then it can last for few days. 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 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 points as mentioned above, furthermore despite the recent 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 slightly concerning and indicates that after the on-going up move exhaustion it may still witness deep fall in coming weeks/months. But please note that as long as price action remains positive there is no major threat and up move can extend further with intermittent correction and weekly and monthly indicators may also turn positive in coming days. So watch out. 

Moving up from here it may face resistance at 20914.75----20961.95----21020---21078---21260.90---21487(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 20751---20719---20599---20568.60---20482.27---20390---20291.55---20262.56----20222.45---20168---19991.85---19948.48---19875.25----19849.75(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.

TRADING TIPS:--

1. Long trade can be tried on decline near 20850 with a stop loss of 20800 ..But aggressive traders can also try long trade on the sharp decline near or within the range of 20700--20680 with a stop loss of 20640.

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 21020—21040 with a stop loss of 21080.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