A TECHNICAL UPDATE ON CNX-NIFTY—6.4.2023

 

CNX-NIFTY

 Open-17422.30--High—17570.55--Low-17402.70---Close-17557.05 on 5.4.2023.

Support: 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: 17565/17594/ 17641/ 17680/ 17719.75/ 17761.40/17774.25/17795.55/17812/17916.80/17959.20/17972.20/17992/18016/18105.30/18114.65/18132/18141/18183.75/18210.15/18265.25/18350.95/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)      

It continued the up move today and finally ended the day near the high with a gain of 159 points.

It is still into deep corrective mode, but the short term technical setup has improved, it is making higher top and higher bottom on the line and bar chart, it is above its short and some medium term moving averages on the daily chart, it is well above its  major pullback trigger point of 17315, it has moved within its long term moving averages which is placed between 17823---17405(figures will change every day) for the day and last but not the least all the four important technical indicators are positive now, therefore all together it is showing strength and indicate that the up move is likely to extend further with in between short corrections provided it holds 17360 and then 17315 levels on the closing basis, else it may start to move down again. It is important to mention here that it will gain good strength only if it moves above its long term moving average range and sustain on the closing, chances of which looks slightly difficult at this point of time. So watch out.

Moving up its critical resistance points could be at 17571---17615---17639---17672---17755—17797----17817. The on-going up move is a pullback rally and it may exhaust at any of these points or earlier also, which please note. But if it moves above 17615 and sustain on the closing basis then it could possibly move up to 17755—17823 else this rally may end here. Similarly moving down its critical support points could be at 17429---17472---17405---17395---17360---17315---17255---17225---17175---17058---16950---16913---16850---16828---16747.70. Please note that break below 17405(figure will change every day) will be an alert sign, sustained break below 17395(figure may change) & 17359.75will push it into short corrective mode for the recent rise, break below 17315 on the closing basis will indicate that the pullback rally has weaken, break below 17175 on the closing basis may deepen the down move and can drag it down to 16747.70 and break below 17058 may end the hope of the continuation of the  pullback up move ,which may be kept in mind.  

In view of the above observation the deep down correction is on but pullback rally is also on. Since it is in deep correction mode therefore it is a sell on the rise market or sell on the price breakdown in general but be cautious in short trade as major pullback rally is on and for the safe traders it is suggested to avoid long trade till a visible sign of correction completion emerges. However aggressive traders can try long trade at important and critical support points for the pullback gains. But be alert and extremely cautious in the long trade initiated for pullback gains because it is in deep corrective mode and you are well aware that pullback rallies are treacherous in nature and can end abruptly trapping the traders unaware. The long term bias is still bearish but the short term technical setup indicates that it may rally for some time provided it holds the key points as mentioned above.

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 favorable 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.