A TECHNICAL UPDATE ON CNX-NIFTY—5.6.2023

 

CNX-NIFTY

 Open-18550.85--High—18573.70--Low-18478.40---Close-18534.10 on 2.6.2023.

Support: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:18604.45/ 18662.45/16696.10/18887.60.

 (Bold and underlined figures are most important)

I am back after three weeks vacation.

The technical setup looks good for the continuation of the up move. Furthermore it is above its short, medium and long term moving averages on the daily, weekly and monthly chart which indicates strength. But certain important advance technical indicators are giving weak signals on the daily chart, which is slightly concerning and indicate that it may correct in coming days, but the price action is still o.k. therefore as long as it is good it may continue the up move despite weak signals from the indicators, but in light of weak technical indicators one should be cautious in the long trade at this point of time. It is important to mention here that as long as it holds 18476 levels on the closing basis then the chances are that it may retest its all-time high of 18887.60 or may go beyond it also, but sustained break below 18476 on the closing basis may trigger down correction, which please note. The bias is bullish as of now.

Moving up from here it will face resistance at 18554—18662.45---16696.10----18887.60, it may correct at any of these points for a while and then may resume the up move again. Similarly moving down its strong and critical support points could be at 18520.37---18476---18464.55---18401---18362.58---18249.70----18229.60---18131.70---18105.30---18060.40---18013---17970, break below 18476 & 18464.55 will trigger correction and it will deepen if it breaks further support points. Please note that to keep the uptrend on or alive it has to sustain above the range of 18131.70---17970 in fact above 18131.70 on the closing basis else break below 17970 may accelerate the fall.

In view of the above observation, long trade can be tried if it moves above 18554 and maintain for some time with a stop loss of 18460, it is suggested to avoid buy on decline for the day. Short trade can also be attempted if it moves below 18460 with a stop loss of 18560 for the intraday gains. Please note that it could be a risky trade but worth trying at this juncture. The short, medium and long term technical setup is still looking good. The long term bias is up 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.