A TECHNICAL VIEW ON CNX-NIFTY FOR—23.1.2023

 

 CNX-NIFTY

 Open-18115.60--High—18145.45--Low-18016.20---Close-18027.65 on 20.1.2023.

Support: 17959.20/17795.55—774.25---761.55/17613.40/17452.90/17342.10/17254.20

17161/16956/16836—833---809/16747.70.

Resistance: 18105.30/18114.65/18132/18183.75/18210.15/18265.25/18350.95/18442.15/

18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)      

After making an all-time high of 18887.60 on 1.12.2022 it is into a corrective mode now but the long term uptrend is still intact.

In this corrective phase it is expected to oscillate in the range of 18266---18184---18132—17853---17761--750, and breakout on the either side will decide the further direction, sustained break and close above 18132 may put it back on the up momentum track and sustained break and close above 18184 & 18266 can accelerate the up move, similarly close below 18013 & 17920 could weaken it further and close below 17761---750 may accelerate the down move and will indicate weakness for the long term uptrend also and break below the range of 17750---17200 will potentially threaten the long term uptrend and finally sustained break below 16747.70 on the closing basing may end the long term uptrend and steady down move may begin. Therefore the range of 17750—17200 is a very strong support range and chances of a bounce back is pretty much strong from this range.

The important technical indicators are giving mixed signals for the long term uptrend at this point of time but some of the indicators on the daily chart are pointing that an up move could be possible from here if it holds the level of 18013 & 17920 and finally 17750 on the closing basis then it could bounce back and can give an up rally to the range of 18250---18450 in coming days. Since it is in corrective mode therefore it is a sell on the rise market in general near the critical resistance point but long trade can also be tried near the important support point of 18013, 17920 & 17750 with a self defined stop loss for a pullback up move.

In view of the above observation it seems that an short up rally is on the card provided it respects the important support points as mentioned above but how it will culminate has to be seen because the corrective up rallies are treacherous in the nature and can end abruptly trapping the trader unaware, so be alert and cautious in the long trade initiated for pullback gains.

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. 

m for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.