A TECHNICAL UPDATE ON CNX-NIFTY—6.3.2023

 

CNX-NIFTY

 Open-17451.25--High—17644.75--Low-17427.70---Close-17594.35 on 3.3.2023.

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: 17641/17652.55/17719.75/17761.40/17774.25/17795.55/17812/17916.80/17959.20/17972.20/17992/18016/18105.30/18114.65/18132/18141/18183.75/18210.15/18265.25/18350.95/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)      

It was very volatile and had a wild swings both ways during the week but eventually ended the week on 3.3.2023 with a gain of 128.54 points. It did break its long term moving average range once intraday but held it on the closing basis, which has resulted in a good bounce back on the last day of the week but it has to be seen whether it can build up on today’s gain or not during the next week starting from 6.3.2023 because some important technical indicators are still weak on the daily, weekly & monthly chart. So if price action becomes weak it can drag it down fast, which may be kept in mind.

It is into deep corrective mode and still within the range of its long term moving average which is placed between 17868---17307(figures will change every day) for the day, furthermore it is below some of its short & medium term moving average on the daily chart and some are below on the weekly chart also, almost all important technical indicators are still negative on the daily, weekly & monthly which is concerning. However the most important thing is price action and the price action was good today and it moved well above its short pullback trigger point of 17463 and if hold this mark then this up move can extend further, but it may have strong, meaningful and lasting up move only if it moves above its major pullback trigger point of 17641 and sustain on the closing basis, else it may start to drift down again. The bias is bearish as of now.

Moving down it will find support at 17565---17537---17509---17463---17353.40---17306---17255.20---17175 (these points could be possible buying points also), break below 17463 may end the pullback rally, but please note that 17306(lower band of the long term moving average) , 17255.20(recent bottom) & 17175 is the last key support for the time being, so it can bounce back from these two points as it did this time, but 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 on the closing basis may end the long term uptrend for a reasonable length of time and fall may accelerate, which may be kept in mind.

Similarly moving up it will find resistance at 17641---17695---17744---17799---17836---17879---17959---17992---18013---18032---18071---18105.30---18132(these points could be possible sell point also), sustained move above 17641 on the closing basis may ensure that the pullback up move may last, but as you are well aware that pullback rallies are treacherous in nature and can end abruptly, so it can end at any of these points or earlier also, therefore be alert and cautious in the long trade. It is important to mention here that it has to move above 18132 and sustain on the closing basis to put it back on the strong up track mode, which may please be noted.

In view of the above observation the deep  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. However aggressive traders can try long trade at important and critical support points for the pullback gains. But be alert and extremely cautious in the long trade initiated for pullback gains because it is in deep corrective mode and pullback rally can fizzle out any time. Please do not trade without stop loss.

TRADING VIEW: - Long trade can be tried for pullback gains if it moves above 17645 and maintain for some time with a stop loss of 17580.

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.