A TECHNICAL UPDATE ON CNX-NIFTY—10.5.2023

 

CNX-NIFTY

 Open-18303.40--High—18344.20--Low-18229.65---Close-18265.95 on 9.5.2023.

Support: 18265.25/18210.15/18183.75/18141/18132/18124.80/18114.65/18105.30/ 18069/18016/18013/17992/17972.20/17959.20/17916.80/17812/17800/17795.55/17774.25/17761.40/17719.75/ 17680/17641/17597.95/17594/ 17574.05/17553.95.

Resistance: 18350.95/18362.60/18442.15/18473.35/18476---18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

It opened with a small up gap and went up further but could not sustain at upper level and drifted down, however it closed flat at the end of the day with a meager gain of 1.55 points. The chart setup still looks good as it is above its short, medium and long term moving averages on the daily, weekly and monthly chart this is a positive sign, but one out of four important technical indicators is slightly weak now, furthermore the price action was also timid, therefore it may remain lacklustre or move sideways for a while or may head down also, so it is suggested to be cautious in the long trade at this point of time.

Kindly note that for the continuation of the up move it has to sustain above its critical range of 18131.70---18105.30on the closing basis, but in worst case scenario the last critical support range would be 17909---17869(figure may change), if it hold this range then it can still stage a bounce back, else the on-going up move may be over and fall may accelerate.  Please note that if it really has the strength it should not break the range of 18131.70--18105.30 now and if it does so then the on-going up move  may be over for the time being and it may go in for moderate to big correction this time.

Moving up from here it will face stiff resistance at 18267.45---18273---18362.60---18402---18476. It can correct at any of these points or earlier also and then may resume the up move again or may exhaust for a while, so be vigilant at the critical points. Please note that if it moves above 18362.60 and sustain on the closing basis it will get out of all corrective mode and up rally may strengthen and finally if it moves above 18476 and sustain on the closing basis the in all probability it may retest its all-time high of 18887.60 or may go beyond it also.

Moving down further from here its critical support points would be at 18210.15---18131.70—18124.80---18114.65---18105.30---18065----18042---18032---18013----17963---17943---17905---17881---17861---17864. These are the important and critical support points and it can bounce back from any of these points. It slipped into very short correction today for its recent gain as it closed below its threshold point of 18273, break below 18158 will push it into short correction for its recent rise, break below 18042 could be very concerning, break below 18007 & 17986 will push it into medium & deep correction for its recent rise and finally sustained break below the range of 17909---17869 on the closing basis will put the on-going up move in jeopardy or may be over and it may head downward. I once again reiterate that to keep the up momentum going it has to sustain above 18131.70 on the closing basis.

In view of the above observation, long trade can be tried if it moves above 18267.45 and maintain for some time with a short stop loss of 18200 or can be tried on decline near or within the range of 18131.70---18105 but not below it with a stop loss of 18030. Please note that buy on decline could be a risky trade for the day, but aggressive traders can still try it. Since it is already into deep corrective mode for its past gains therefore short trade can also be tried on the rise at appropriate stiff resistance points or on price breakdown for the intraday gains.  The short, medium and long term technical setup is still looking good. The long term bias is up as of now. It is still a buy on decline market as of now but with utmost caution. 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.