A TECHNICAL UPDATE ON CNX-NIFTY—4.7.2023

 

CNX-NIFTY

 Open-19246.50--High—19345.10--Low-19234.40--Close-19322.55 on 3.7.2023.

Support: 19303/19275/19201.70/19189/19138/ 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: 19450/19498/19535/19639/19663/19674/19748/20160/20210/20390.

 (Bold and underlined figures are most important)

It is vertically moving up for the last four days and hitting new highs for the last three days and despite the 3^rd up gap today if refuses to correct, generally after the 3^rd gap it corrects and then resumes the up move again if the uptrend is strong, but it is showing no sign of correction as of now therefore exhibiting extraordinary strength for the continuation of the up move. It is important to mention here that it still has unfilled gaps, so the threat of filling the gap is there and most importantly it is vertically rising and this is very concerning, however this rise may continue for few days more but please note that vertical rise may have vertical fall too at times so be alert and careful at this point of time.

Moving up from here it may face resistance at 19450---19498---19515---19535---19639, 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 19180—19159---19137---19075---19041---18922---18887.60---18818(figures may change), it may bounce back from any of these points and resume the up move, but break below 19180 will push it into very short correction for its recent rise and thereafter break below each points may deepen the correction, break below 19041 will be an alert point and break below 18887.60 will be an warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 18800 and sustain on the closing basis. 

It is in the strong long term uptrend and it is buying on decline market in general, but in light of unfilled gaps and vertical rise it is suggested to avoid long trade below 19180 for the day.

TRADING TIPS:--

1. Long trade can be tried on decline at appropriate points or near 19180 and not below it with a stop loss of 19125 or if it moves above 19345 and maintain for some time with a short stop loss of 19260(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 19515----19525 with a short stop loss of 19560, 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.