A TECHNICAL UPDATE ON CNX-NIFTY—5.5.2023

 

CNX-NIFTY

 Open-18081--High—18267.45--Low-18066.70---Close-18255.80 on 4.5.2023.

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

Resistance:  18265.25/18350.95/18362.60/18442.15/18473.35/18476---18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

As anticipated it bounced back today itself and closed with a decent gain of 165.95 points. It decisively closed above its important and critical range of 18131.70—18124.80---18114.65--18105.30 which is an extremely positive sign and will provide great strength for the continuation of the up move but with intermittent correction.

Moving up from here it will face stiff resistance at 18265.25---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 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 18214---18201.65---18131.70---18124.80---18105.30—18065----18042---18032---18013----17948---17928---17900---17881---17861---17854. These are the important and critical support points and it can bounce back from any of these points. But break below 18214 will push it into  common correction for its most recent gain and it may last a day or two, break below the range of 18131.70---18105.30 will indicate fatigue and exhaustion for the up move, break below 18099 will push it into short correction for its recent gain, break below 18042 could be  very concerning, break below 17948 & 17928 will push it into medium & deep correction for its recent rise and finally sustained break below the range of 17900---17854 on the closing basis will put the on-going up move in jeopardy and it may head downward. It is important to mention here that looking at today’s move it is most likely to hold its critical range of 18131.70---18105.30 and continue with the up move, but if it breaks this range now then it could be highly concerning.

In view of the above observation, it  is a buy on decline market, therefore  long trade can  be tried if it moves above 18270 and maintain for some time with a short stop loss of 18220 or can buy on decline at appropriate points or near or within the range of 18131.70---18090 with a stop loss of 18020. 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 short, medium and long term technical setup is looking good now and it is 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.