A TECHNICAL UPDATE ON CNX-NIFTY—3.5.2023

 

CNX-NIFTY

 Open-18124.80--High—18180.25--Low-18101.75---Close-18147.65 on 2.5.2023.

Support: 18141/ 18131.70/18114.65/18105.30/18016/18013/17992/17972.20/17959.20/17916.80/17812/17800/17795.55/17774.25/17761.40/17719.75/ 17680/17641/17597.95/17594/ 17574.05/17553.95/17529.90/ 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:  18105.30/18114.65/18132/18141/18183.75/18210.15/18265.25/18350.95/18362.60/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

The technical setup looks on firm footing, furthermore it has closed above its most critical point of 18131.70 today, which puts it on a strong up momentum track and it is likely to continue the up move in coming days if it holds it. But it moved in a short range today therefore a reasonable or big move on the either side may be in the offing in a day or two, furthermore it continued the straight rise for the 6^th day in a row today and closed with a gain of 82.65 points. It is important to mention here that the straight rise makes it vulnerable for correction also, therefore correction can creep in any day, so be alert and cautious at this point of time. However it is showing good strength and it is in the uptrend now, therefore any short correction could be a healthy sign for the up move to continue, provided it does not break the range of 18131.70—18124.80---18105.30 and even if it break then it should not sustain below it for more than 2 days at max on the closing basis, else the up move may be in trouble.

As you are already aware that it is still into the moderate deep corrective mode but strong up move is on, so chances are that it can get out of the deep corrective mode if it moves above 18362.60 and sustain on the closing basis. So moving up from here it will face stiff resistance at the 18201.25---18265.25---18362.60---18402---18476. It can correct at any of these points or earlier and may resume the up move again. Please note that if it moves above 18476 and sustain on the closing basis then it could retest its all-time high of 18887.60 or may go beyond it also, which please note. The bias is bullish as of now.

Similarly moving down during correction its critical support points would be at 18131.70---18124.80---18105.30—18065----18032---18013----17890---17881---17861---17846. These are the important and critical support points and it can bounce back from any of these points. But sustained break below the range of 18131.70---18124.80---18105.30 on the closing basis will indicate fatigue & exhaustion for the up move, that break below 18032 will push it into short correction mode for its recent rise, break below 18013 will push it into deep correction mode for previous big gains and finally sustained break below the range of 17890---17846 will put the on-going up move in jeopardy and it may start to move down.

In view of the above observation, it is a buy on decline market now, therefore for safe traders long trade can be tried near or within the range of 18131.70—18105.30 if it holds the range for some time with a stop loss of 18030 avoid buy on decline for the day. But aggressive traders can also try buy on decline at appropriate points or near or within the range of 17890---17841 with a stop loss of 17780, it could be a risky trade but worth trying. Since it is still into deep corrective mode therefore short trade can also be tried on the rise at appropriate stiff resistance points or on price breakdown for the intraday gains but with due caution because it is in the strong up momentum now.  The long term bias is showing marked improvement and chart setup is also looking good, short & medium term technical setup is nicely poised now and likely to move up further, provided it holds the key support point as mentioned above. 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.