A TECHNICAL UPDATE ON CNX-NIFTY—12.4.2023

 

CNX-NIFTY

 Open-17704.80--High—17748.75--Low-17655.15---Close-17722.30 on 11.4.2023.

Support: 17719.75/ 17680/17641/17594/ 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:  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 7 days and ended the day with a gain of 98.25 points. Please note that the strait rise also makes it vulnerable for short correction also, so be alert and watchful.

The short term technical setup is looking good and it has also given upside breakout from it’s down trend line today which is an extremely positive sign and if it sustains the breakout then it may witness good upside from here. It is still into deep corrective mode, but the major pullback up move is also on and if the rally continues it may get out of the corrective mode also. The complete correction completion points are 18013 & 18362.60,  since it is above its critical point of 17615 and also crossed its tough resistance range of 17639---17690, therefore this rally can extend further up to 17755—17800 or more, it did hit 17748.75 intraday today. Please note that if it moves above the upper band of its long term moving average range, which is placed at 17825(it changes every day) for the day then the up rally may strengthen further. It is important to mention here that if it moves above 18132 and sustain on the closing basis then it will be on the strong up momentum track.

Moving up its critical resistance points could be at 17755—17797—17800---17825---18132. The on-going pullback rally may exhaust or correct at any of these points or earlier also, which please note. Similarly moving down its critical support points could be at 17690---17672---17639---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 17551 & 17531(figure may change)will push it into short & medium corrective mode for the recent rise, break below 17424(figure will change every day) will potentially threaten the uptrend, which may be kept in mind.  

In view of the above observation for safe traders, it is suggested that long trade can be tried on decline near 17655 but not below it or if it moves above 17755 and maintain for some time; however aggressive traders can also try buy on decline near 17551 but not below this as of now. Since it is still into deep corrective mode therefore short trade can also be tried on the rise at appropriate points or on price breakdown for intraday gains. The long term bias is still bearish but chart structure is improving, short term technical setup indicates that it may rally for some time with intermittent correction provided it holds the key points as mentioned above. Do not trade without proper 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.