A TECHNICAL UPDATE ON CNX-NIFTY—19.4.2023

 

CNX-NIFTY

 Open-17766.60--High—17766.60--Low-17610.20---Close-17660.15 on 18.4.2023.

Support:  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:  17680/17719.75/ 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)

The correction continued for the 2^nd day and it ended the day with a loss of 46.70 points. Please note that in a momentum market correction should not last for more than 2-3 days at max and if it last more than that then it may be a warning signal. It is still respecting the downtrend line breakout and as long as it holds this chance of up move will always be there, but if it falls below 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 17595(this figure will scale down every day) for the day

The short term technical setup is still looking good, 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 17863---17920---17950---18013----18105---18132---18363---18402---18476. The on-going rally can correct at any of these points as correction is on now 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 provided it sustains the downtrend line breakout.

Moving down its critical support points would be at 17639---17619---17600----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 17433(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 the continuation of the up move it should not fall below it’s down trend line on the closing basis, which is placed at 17595(this figure will scale down every day) for the day. It is important to mention here that now the crucial broad range for it is between 17863---17595---17574 and breakout on the either side will decide further direction of the market. Since it is near the lower band of the range this is slightly concerning. Last but most importantly it should bounce back sharply in next 2-3 days trading session; else this up move may be in real trouble.

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---17595 but not below it with a stop loss of 17560 or if it moves above 17863 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 17650 or near 17835 with a stop loss of 17870 for intraday gains.  The long term bias is showing some improvement but still with a bearish tinge at this point of time, 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.