A TECHNICAL UPDATE ON CNX-NIFTY—4.5.2023

 

CNX-NIFTY

 Open-18113.80--High—18116.35--Low-18042.40---Close-18089.85 on 3.5.2023.

Support: 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:  18105.30/18114.65/18124.80/18132/18141/18183.75/18210.15/18265.25/18350.95/18362.60/18442.15/18473.35/18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

As envisaged after 6 days of straight rise it corrected today and ended the day with a loss of 57.80 points and this correction may possibly end in next 1 to 2 trading sessions. Although it closed below its most critical range of 18131.70—18124.80---18114.65--18105.30 but as long as it holds its range of 17900---17850 there is no major threat to the on-going uptrend. But please note that it will get into strong up momentum track only if it moves above 18131.70 and sustain on the closing basis and as of now it seems that it can bounce back above it in next 1-2 trading session and resume the up move again as the overall technical setup looks on firm footing as of now and indicates further rise ahead. Therefore it is a buy on decline market till is holds the range of 17900---17850. Please note that sustained break below this range could be concerning for the continuation of the up move.

Moving up from here it will face stiff resistance at the 18105.30---18114.65---18124.80---18131.70—18201.25---18265.25---18362.60---18402---18476. It can correct at any of these points or earlier and then may resume the up move again or may exhaust for a while, so be vigilant at the critical points. Please note that sustained close above 18131.70 will put it on strong up momentum track, it is still into the moderate deep corrective mode for earlier major gains and if it moves above 18362.60 and sustain on the closing basis then it will be out of all corrective modes and may get extra strength to move up faster and finally 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----17900---17881---17861---17846. These are the important and critical support points and it can bounce back from any of these points. Break below 18032 will push it into short correction for its recent rise and finally sustained break below the range of 17900---17850 will put the on-going up move in jeopardy and it may head downward.

In view of the above observation, it corrected today but it is still a buy on decline market, therefore for safe traders long trade can only be tried if it moves above 18131.70 and sustain on the closing basis else avoid. But aggressive traders can try buy on decline at appropriate points or near or within the range of 17900---17850 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.