A TECHNICAL UPDATE ON CNX-NIFTY—21.4.2023

 

CNX-NIFTY

 Open-17638.60--High—17684.45--Low-17584.35---Close-17624.45 on 20.4.2023.

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)

After 3 days of fall it closed positive today but with a meagre gain of 5.70 points. Although it is still holding above the downtrend line which is placed at 17574(it scales down every day) and its critical point is also at 17574 but it should have bounced back sharply and moved up way above this point to give firm signal for the continuation of the up move but it failed, so the concern of rally exhaustion is still there and break below 17574 may accelerate the fall, chances of which looks fairly high at this point of time.  

Moving down further its critical support points would be at 17619----17600----17585---17574---17433---17315, it was already into deep corrective mode ,it has also gotten into short  correction mode for its recent rise as it is below its threshold point of 17639, break below 17619 will push it into medium correction mode for its recent rise. Please note that sustained break below 17574 will trigger fresh fall, break below 17436(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 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. But since it has been testing 17574 levels for the last 3 days and settling down near it only at the end of the day indicates that with each passing day the possibility of moving up is receding, which may please be noted.

In view of the above observation, it is suggested that long trade can only be tried for the day if it maintains above 17625 for some time with a stop loss of 17565 avoid buy on decline as could be a risky affair for the day. 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 17641 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.