A TECHNICAL UPDATE ON CNX-NIFTY—24.4.2023

 

CNX-NIFTY

 Open-17639.75--High—17663.20--Low-17553.95---Close-17624.05 on 21.4.2023.

Support:  17597.95/17594/ 17574.05/17553.95/17529.90/ 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 has been giving whip-saw around its downtrend line for the last 5 days but has sustained the upside breakout and it is reasonably above the downtrend line now which is placed at 17553 (figure will scale down every day) for the day, it is in a way  a positive and good sign for the up to resume but at the same time it is concerning also because had it have the strong strength it should not have hovered around the downtrend line for so long and should have staged a sharp recovery by now, therefore it is suggested to keep a balanced view now because chances are that it may move in a either side direction. Please note that its broad range for the week starting from 24.4.2023 is between 17863---17766---17691---17553. It is at make or break juncture now and looking at the overall technical setup as of now it seems that it still has the fair possibility to resume the up move again if it manages to hold 17553, but sustained break below 17553 on the closing basis will dampen or may end the up move and down journey may begin. So be watchful now.

Moving down further its other critical support points would be at 17437(figure will change every day) ---17315. Please note that 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 deep correction for its recent rise, break below 17437 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. Therefore 17315 is the last key support point. Please note that to get back into the up grove it has to move above 17639---17766---17800----17835---17863 and sustain on the closing basis, else the up rally may possibly exhaust and it may start to drift down.

In view of the above observation, be alert and cautious in the long trade at this point of time, but for safe traders it can only be tried if it maintains above 17641 for some time with a stop very short loss of 17600, but the authentic stop loss would be below 17553, but aggressive traders can try buy on decline also near 17553 but not below it with a stop loss of 17510, please note that buy on decline 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 17553 and maintain for some time with a stop loss of 17630 for the intraday gains.  The long term bias is showing some improvement but it is still having a bearish tone at this point of time, short term technical setup is evenly poised now and as mentioned above it is at make or breaks 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.