A TECHNICAL UPDATE ON CNX-NIFTY—25.4.2023

 

CNX-NIFTY

 Open-17707.55--High—17754.50--Low-17612.50---Close-17743.50 on 24.4.2023.

Support: 17719.75/ 17680/17641/17597.95/17594/ 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:  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 it sustained the downtrend line upside breakout despite giving whip-saw for 5 days around it, therefore as anticipated it bounced back sharply today and closed way above its downtrend line with a gain of 119.35 points. It is showing reasonable strength now and indicates further up move ahead. However please note that it is still into deep corrective mode therefore moving up from here it will face stiff resistance at 17766---17797---17801---17835---17863---17920---18013---18106---18132. It can correct at any of these points or earlier and may resume the up move again or may exhaust the rally also, but if it moves above 17835(figure may change every day) and sustain on the closing basis then it will gain good strength for the continuation of the up move and finally if it moves above 18132 and sustain on the closing basis then it will be on the fast up momentum track, which please note. The bias is bullish as of now.   

Similarly moving down its critical support points would be at 17707.55---17639---17619--- 17553.95----17439(figure will change every day) ---17315. As you know that it is already into deep corrective mode for a long time, break below 17639 &17619(figures may change) will push it into short & medium correction for its recent rise, break below 17553.95 may trigger fresh fall, break below 17439 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 as of now.

In view of the above observation, for safe traders long trade can be tried if it moves above 17756 and maintain for some time with a short stop loss of 17680, but the authentic stop loss would be 17610, however aggressive traders can also try buy on decline near or within the range of 17639---17619 but not below it with a stop loss of 17535, please note that this trade 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 for the intraday gains.  The long term bias is showing some improvement but it is still having a bearish tinge at this point of time, short term technical setup is nicely poised now and likely to move up further, provided it holds the key support points. 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.