A TECHNICAL UPDATE ON CNX-NIFTY—18.4.2023

 

CNX-NIFTY

 Open-17863--High—17863--Low-17574.05---Close-17706.85 on 17.4.2023.

Support:  17680/17641/17597.95/17594/ 17574.05/17565/17529.90/ 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: 17719.75/ 17761.40/ 17774.25/17795.55/17800/17812/17916.80/17959.20/17972.20/17992/18016/18105.30/18114.65/18132/18141/18183.75/18210.15/18265.25/18350.95/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

As anticipated it corrected and did have a vertical fall today, it also went below its downtrend line intraday but  recovered smartly from the lower levels of the day and finally closed with a moderate loss of 121.15 points, the correction was needed for the smooth continuation of the on-going up move. The correction may last for one or two days more but if it sustains the downtrend line breakout then it may resume the up move again, but if it falls within it and sustain on the closing basis then the up momentum will lose steam and it may head downward. The downtrend line is placed at 17607(this figure will scale down every day) for the day

The short term technical setup is looking good and it seems that it is likely to move up further as of now, but it is into deep corrective mode, but the major pullback up move is also on and if the rally continues it may get out of the deep corrective mode also. The complete correction completion points are 18013 & 18363. Please note that if it moves above 17835(figure will change every day) and sustain on the closing basis then the up rally may strengthen further and can extend to 17858---17920---17950---18013----18105---18132---18363---18402---18476. The on-going rally can correct at any of these points as it corrected today or earlier also and then may resume the up move again or may exhaust also for a while. 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. The overall technical setup indicates further upside is likely in coming days with in between down correction.

Moving down its critical support points would be at 17639---17619---17607----17592---17574---17430---17315 apart from other support points as mentioned above. Please note that sustained break below 17639 & 17619(figure may change) will push it into short & medium corrective mode for its recent rise, break below 17574 will drag it down further, break below 17431(figure will change every day) will potentially threaten the long term uptrend and finally break below 17315 will end the major pullback up move hope for good. I once again reiterate here that for continuation of the up move it should not fall below its down trend line on the closing basis, which is placed at 17607(this figure will scale down every day) for the day , which may be kept in mind.  

In view of the above observation, it is suggested that long trade can be tried on decline at appropriate points or near or within the range of 17639---17608 but not below it with a stop loss of 17565 or if it moves above 17835 and maintain for some time. 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, short trade can be tried if it moves below 17574 with a stop loss of 17645 for intraday gains.  The long term bias is showing improvement but still with a bearish tinge as of now, short term technical setup indicates that it may rally further for some time with intermittent correction provided it holds the key points on decline 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.