CNX-NIFTY
Open-20808.90---High—20864.05-Low-20711.15--Close-20855.10 on
5.12.2023.
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:20864.05/20914.75/21078/21260.90/21487/21607.05/22219/22463.
(Bold and underlined figures are most important)
It opened up with an up gap for the 2nd day in a row and hit a new all-time high again and finally ended the day with a gain of 168.30 points. Please note that it almost covered the today’s gap but some gap is still left, furthermore the gap it created on 4.12.2023 is still there and if it makes an effort to fill the gap in next 2-3 trading sessions, which is technically possible then it can come down to 20291, but if it does not fill the gap in stipulated time then chances of filling the gap will recede.
It has been exhibiting extra ordinary strength and hitting new all-time high for the last three days, it is in the new territory now therefore, it is likely to extend the up move further from here but due caution is suggested, because it has been rising with pace for the last six days, which makes it vulnerable for correction, furthermore in new territory possibility of correction is very high and since it had vertical rise therefore correction could be vertical also at times but even normal correction in this case could be disturbing and it can happen any movement, so ride the on-going up move cautiously and keep a watch on the price action for correction indication. I once again repeat that the on-going up move is likely to continue with intermittent correction, but break below 20606& 20386(figure may change) will push it into short and deep short correction mode for its recent rise and break below 20222.45 could be an alert point and may deepen correction. 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 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 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 turn positive also in coming days. So watch out.
Moving up
from here it may face resistance at 20914.75----21078---21260.90(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.
IMPORTANT NOTE: - It had left two up gaps in the last two
days and if it opens up with an up gap on 6.12.2023 that is above 20864.05,
then there is a distinct possibility that it may correct the same day.
TRADING TIPS:--
1. Long trade can be tried on decline near 20700
with a stop loss of 20650 or if it move above 20865 and maintains
above it for some time with a stop loss of 20790.But aggressive traders
can also try long trade on the sharp decline near or within the range of 20385----20290
with a stop loss of 20200.
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 20990—21030 with a stop loss of 21080. 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
