A TECHNICAL UPDATE ON CNX-NIFTY—3.7.2023

 

CNX-NIFTY

 Open-19076.85--High—19201.70--Low-19024.60--Close-19189.05 on 30.6.2023.

Support: 19138/ 19104/19035/18991/18887.60/18886.60/18881.45/18794.10/18864.70/18778/18696.10/18660.65/18604.45/ 18555.40/18531.60/18464.55/18458.90/18350.95/18265.25/18210.25/18202.40/18201.25/18134.75/18131.70/18114.65/18105.30/18060.40/18042.40/17959.20

Resistance: 19201.70/19275/19303/19450/19498/19535/19639/19663/19674/19748/20160.

 (Bold and underlined figures are most important)

It is showing extraordinary strength and hitting new high for the last two days. The overall chart setup is strong, moving average placement is good; price action is also strong and most importantly all the four important technical indicators have turned positive today which is very good and positive sign and up move is likely to continue with intermittent correction in coming days. It is important to mention here that for the last two days it has been opening with an up gap and these gaps are still there, please note that if it makes an effort to fill these gaps in next 3-4 trading session, which is technically possible then it can come down to 19011 & then 18829 but if it does not fill the gap in the stipulated time then chances of filling the gap will recede. So approach the market vigilantly.

Moving up from here it may face resistance at 19275---19303---19450---19498---19535, it may correct at any of these points and then may resume the up move again. Similarly going down its support points could be at 19070.70—19049---19027---18966---18932---18887.60---18874---18812---18757(figures may change), break below 19070.70 will push it into very short correction for its recent rise, break below 18932 & 18887.60 will be an alert point and sign of weakness and finally it may lose upside steam for a while if it moves below 18757 and sustain on the closing basis. 

It is in the long term uptrend and buy on decline market in general, but if it opens with an up gap i.e. above 19201.70 on 3.7.2023 and moves up further then don’t jump to initiate long trade wait and let the market settle down and try long trade on declines at appropriate points, because most of the time market reacts after the 3^rd gap.

TRADING TIPS:--

1. Long trade can be tried on decline at appropriate points or near or within the range of 18940---18888 and not below it with a stop loss of 18840 or if it opens flat and then moves above 19201.70 and maintain for some time with a short stop loss of 19130(it could be a risky trade for the day).

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it can be attempted on the reasonable rise or on the price breakdown for intraday corrective gains. Short trade can be tried on the rise near or within the range of 19350----19370 with a short stop loss of 19400, it could be a risky trade but worth trying.

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.