A TECHNICAL UPDATE ON CNX-NIFTY—20.4.2023

 

CNX-NIFTY

 Open-17653.35--High—17666.15--Low-17579.85---Close-17618.75 on 19.4.2023.

Support:  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:  17641/17574.05/17594/17597.95/17641/17680/17719.75/ 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)

It continued to correct for the 3^rd day and ended the day with a loss of 41.40 points. Please note that in a momentum market correction should not last for more than 2-3 days at max and today was the 3^rd day and that is concerning, therefore if it does not bounce back sharply in next 1-2 trading session then it may head downward. Furthermore it is hovering around the downtrend line and doing whip-saw also but sustained the downtrend line breakout as of now but it closed just above it and this is highly concerning. The downtrend line is placed at 17585(this figure will scale down every day) for the day and the other critical point is 17574 and break below both the points may accelerate the fall, which may please be noted.

Moving down further its critical support points would be at 17600----17585---17574---17433---17315, it was already into deep corrective mode ,but it has gotten into short and medium correction mode today for its recent rise as it is below its threshold point of 17639 & 17619. Please note that sustained break below 17585 & 17574 will trigger fresh fall, break below 17435(figure will change every day) will potentially threaten the long term uptrend and may accelerate the fall and finally break below 17315 will end the possibility of the major pullback up move hope for good and fall may continue with in between short relief rallies..

The short term technical setup is still looking good, but to get back in to the up move grove, firstly it has to hold 17585 & 17574 levels and then it has to move above 17639---17766---17800----17835---17863 and sustain on the closing basis ,else the up rally may possibly end and down journey may begin.

In view of the above observation, it is suggested that long trade can be tried if it holds 17585---17574 range for some time but not below it with a stop loss of 17550 or if it moves above 17670 and maintain for some time with a stop loss of 17615. Since it is still into deep corrective mode and also in correction for its recent rise 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 sell on the rise near 17766 with a stop loss of 17840 for the intraday gains.  The long term bias is showing some improvement but still having a bearish tone at this point of time, short term technical setup is evenly poised now and it is at make or break juncture, so watch out for a clear direction with the help of above observation. 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.