A TECHNICAL UPDATE ON CNX-NIFTY —20.2.2023

 

CNX-NIFTY

 Open-17974.85--High—18034.25--Low-17884.60---Close-17944.20 on 17.2.2023.

Support:17916.80/17812/17795.55/17774.25/17761.40/17719.75/17652.55/17493.55/17484/17452.90/17342.10/17326.10/17254.20/17166---17161/16950/16888/16836—833---809/16747.70.

Resistance:17959.20/17972.20/17992/18016/18105.30/18114.65/18132/18141/18183.75/18210.15/18265.25/18350.95/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)      

It did made an attempt to cross its important point of 18132 during the week ended on 17.2.2023, but failed to close above it despite some important technical indicators turning positive on the daily chart which is slightly concerning and if it does not pick up momentum in next few days and price weaken then it may start drifting down, because technical parameter on the weekly & monthly chart are giving very weak indication and pointing that it could break 17100 levels in coming week /months if it does not stage a sharp recovery and move above its important points as mentioned shortly.    

It is still in to the corrective mode but pullback move is on and sustain close above 18363 only could end the on-going correction and put it back on the strong up track, else it may start moving down again. But as long as it holds the upper band of its long term moving average range which is placed between 17850---17237(it changes every day) for the day and its pullback trigger point of 17715 (the trigger points will be scale down once its break its recent low of 17353.40), chance of  pullback rally will remain.

Moving down it will find strong support at 17939---17877---17850---17812---17761---17715---17637---17565---17553---17472---17405.55---17353.40---17252---17237---17175 (these points could be possible buying points also),please note that 17237 & 17175 is the last key support for the time being and sustained break below it could trigger fresh fall and finally 16747.70 is the very critical and most important support point and sustained break below it may end the long term uptrend for a reasonable length of time and fall may accelerate, which may be kept in mind, so 17237---17175 & 16747.70 are very important support points. Similarly moving up it will find resistance at 17972---18013---18032---18105.30---18132---18201.25---18265.25---18302---18363---18526---18581(these points could be possible sell point also), please note that it is a pullback rally as of now therefore it can end at any of these points or earlier also but if it moves above 18132 and sustain on the closing basis then it will provide good strength for the up move to continue and close above 18013 & 18363 will end the corrective mode and finally if it moves above 18581 and sustain on the closing basis then it could retest its all-time high of 18887.60 or may go beyond it also.

In view of the above observation the  down correction is on therefore it is a sell on the rise market or sell on the price breakdown in general and for the safe traders it is suggested to avoid long trade till a visible sign of correction completion emerges. But the pullback move is also on therefore aggressive traders can still try long trade at important support points for the pullback gains. But it is important to mention here that the pullback rallies are treacherous in the nature and can end abruptly trapping the traders unaware, so be alert and extremely cautious in the long trade initiated for pullback gains. Please do not trade without stop loss.

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 favourable 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.