A TECHNICAL UPDATE ON CNX-NIFTY—9.5.2023

 

CNX-NIFTY

 Open-18120.60--High—18286.95--Low-18100.30---Close-18264.40 on 8.5.2023.

Support: 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: 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 sharply bounced back today and decisively closed above its important & critical range of 18131.70—18124.80---18114.65--18105.30 which is a positive sign. It closed with a gain of 195.40 points recovering the previous day’s entire losses is a good indication. The price action was strong today, it is well above its short, medium and long term moving averages on the daily, weekly and monthly chart therefore it is likely to continue the up move in coming days but one out of four important technical indicators has give slightly weak signal today, therefore price action has to watched for next 2 trading sessions for the firmness of the up move, 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 aforesaid critical range on the closing basis, but in worst case scenario the last critical support range would be 17905---17864(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 this time.

Moving up from here it will face stiff resistance at 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 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 18229---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. Please note that break below 18229 & 18114 will push it into very short & short correction for its recent gains, break below 18042 could be very concerning, break below 17963 & 17943 will push it into medium & deep correction for its recent rise and finally sustained break below the range of 17905---17864 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 18287 and maintain for some time with a short stop loss of 18220 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. 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. 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.