A TECHNICAL UPDATE ON CNX-NIFTY —10.3.2023

 

CNX-NIFTY

 Open-17772.05--High—17772.35--Low-17573.60---Close-17589.60 on 9.3.2023.

Support: -17565/17493.55/17484/17452.90/17421.80/17405.55/17353.40/17342.10/17326.10/17306/17255.20/17166---17161/16950/16888/16836—833---809/16747.70.

Resistance: 17594/ 17641/ 17680/ 17719.75/ /17761.40/17774.25/17795.55/17812/17916.80/17959.20/17972.20/17992/18016/18105.30/18114.65/18132/18141/18183.75/18210.15/18265.25/18350.95/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)   

It is still in the deep corrective mode therefore all the observation in my last post of 6.3.2023 will remain valid for the rest of the week except for the following.

1.     The long term moving average range is placed between 17876---17332(figures will change every day, this is very strong support range) for the day.

 It is already into deep corrective mode  and within this it corrected today and closed below its very short correction threshold point of 17671.40 so it has gotten into short corrective mode, furthermore it is also below its major pullback trigger point of 17641  and also below some of its short term moving averages on the daily and below some on the weekly chart also, which is concerning, please note that if it does not bounce back above these two points and sustain on the closing basis in next 2-3 trading session then correction may deepen. However if it manages to hold 17463 then chances of a feeble up move will be there but strong up move can only be expected if it sustains above 17641 on the closing basis, else it may start to drift down again. It is needless to mention here that it will gain good strength above its long term moving average range and then sustained move above 18132 on the closing basis may put it back on the strong up momentum.

Please note that certain technical indicators are positive on the daily chart, so if the price action remains o.k. then indicators will eventually help the continuation of the up move. The price action was very weak today and if remains weak for a couple of days then the indicators can turn negative and fall may accelerate.

TRADING VIEW: - for safe traders long trade can be tried if it closes above 17641 and sustain on the closing basis, else avoid, however aggressive traders can try long trade if it moves above 17641 and maintain for some time with a stop loss of 17570. Since, it gotten into short corrective mode, so short trade can also be attempted below 17570 with a stop loss of 17655.

NOTE: - If it opens up with huge gap up then wait for it to settle down 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

Email—suranank@gmail.com

Mobile—8240951127/9831313654.