A TECHNICAL UPDATE ON CNX-NIFTY—11.4.2023

 

CNX-NIFTY

 Open-17634.90--High—17694.10--Low-17597.95---Close-17624.05 on 10.4.2023.

Support: 17594/ 17565/17529.90/ 17493.55/17484/17452.90/17421.80/17405.55/17353.40/17342.10/17326.10/17306/17255.20/17175/17166/17161/17058/17044/17035/16950/16888/16850.15/16836—833---828.35---809/16747.70/16438.75/16410.20.

Resistance:  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 has been continuously moving up for the last 6 days and ended the day with a meagre gain of 24.90 points. Please note that the strait rise also makes it vulnerable for short correction also, so be watchful.

The short term technical setup is looking good as of now. But it is still into deep corrective mode, but the pullback up move is on, it seems that the on-going up move is near exhaustion but today it closed above its critical point of 17615 and if it sustain above it on the closing basis then this rally can extend up to 17755---17815 but it will face very tough resistance in the range of 17639---17690 and it did retreated back from this range today, therefore holding on to 17615 levels looks slightly tough at this point of time. It is important to mention here that it will gain good strength only if it moves above its long term moving average range which is placed between 17825----17422 for the day sustain on the closing.

Moving up its critical resistance points could be at 17639---17672---17690---17755—17797----17817. The on-going pullback rally may exhaust at any of these points or earlier also, which please note. Similarly moving down its critical support points could be at 17571---17615---17429---17472---17405---17395---17360---17315---17255---17225---17175---17058---16950---16913---16850---16828---16747.70. Please note that break below 17615 may weaken the on-going up move, sustained break  below 17510 & 17490(figure may change)will push it into short & medium corrective mode for the recent rise, break below 17422(figure will change every day) will be an alert sign for up move exhaustion, sustained break below 17359.75 & 17315 on the closing basis will indicate that the pullback rally has weaken, break below 17175 on the closing basis may deepen the down move and can drag it down to 16747.70 and break below 17058 may end the hope of the continuation of the  pullback up move ,which may be kept in mind.  

In view of the above observation the deep down correction is on but pullback rally is also on. Since it is in deep correction mode therefore it is a sell on the rise market or sell on the price breakdown in general but be cautious in short trade as major pullback rally is on and also be alert in the long trade now as this up rally may be near exhaustion, therefore 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 you are well aware that pullback rallies are treacherous in nature and can end abruptly trapping the traders unaware. The long term bias is still bearish but the short term technical setup indicates that it may rally for some time provided it holds the key points as mentioned above.

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.