A TECHNICAL UPDATE ON CNX-NIFTY—8.5.2023

 

CNX-NIFTY

 Open-18117.30--High—18216.95--Low-18055.45---Close-18069 on 5.5.2023.

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.

Resistance: 18105.30/ 18114.65/18124.80/18132/18141/18183.75/18210.15//18265.25/18350.95/18362.60/18442.15/18473.35/18476---18604.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

It reacted to the world market cues and corrected today and closed with a loss of 186.80 points. It exhibited volatility and the price action was weak and most importantly it closed below its critical range of 18131.70—18124.80---18114.65--18105.30 which is highly concerning for the continuation of the up move. Please note that it is down but not out of the up move race as yet because it’s all important technical indicators are positive on the daily, weekly and some on the monthly chart, furthermore it is also above its short, medium and long term moving averages on the daily, weekly and monthly chart, therefore despite today fall it still stand a good chance that it may bounce back above the aforesaid critical range in next 1-2 trading session else the on-going up move may be in trouble, but the last ray of hope for continuation of the up move is the range of 17905---17859( figures may change) and if it holds this range on the closing basis then it could still stage a comeback and eventually move above its critical range, else the on-going up move may be over and fall may accelerate.

Moving down further from here its critical support points would be at 18065----18042---18032---18013----17948---17928---17905---17881---17861---17859. These are the important and critical support points and it can bounce back from any of these points. It has gotten into very short & short correction today for its recent gains as it is below its threshold points of 18214 & 18099 now, 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---17859 on the closing basis will put the on-going up move in jeopardy or may be over and it may head downward.

Moving up from here it will face stiff resistance at 18105.30---18114.65---18124.80---18131.70—18210.15---18267.45---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 it will pick up momentum only if it moves above 18131.70 and sustains on the closing basis.

In view of the above observation, for safe trader it is suggested to avoid long trade till it closes above 18131.70, however aggressive traders can try long trade if it holds 18042 for some time with a stop loss of 17990 or can buy on decline near or within the range of 17905---17859 with a stop loss of 17800 this could be a risky trade but worth trying. Since it was already into deep corrective mode and it gotten into short correction for its recent rise therefore short trade can also be tried on the rise at appropriate stiff resistance points or on price breakdown for the intraday gains. One can try short trade if it moves below 18042 with a stop loss of 18135.  The short, medium and long term technical setup is still looking good but shaken with today’s price action and volatility. Furthermore it has broken its critical support range as mentioned above which is concerning, so watch out for a day or two for clear direction. The long term bias is still up. 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.