A TECHNICAL UPDATE ON CNX-NIFTY—3.8.2023

 

CNX-NIFTY

 Open-19655.40--High—19678.25-Low-19423.55--Close-19526.55 on 2.8.2023.

Support: 19523.60/ 19498/19450/19303.60/ 19300/19275/19246.50/19234.40/19201.70/19189/19138/ 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: 19535/ 19584/ 19608/19639/19674/19748/19830/19925/19970.50/19991.85/20160//20236/20278/20390/20719/20944.

 (Bold and underlined figures are most important)

It opened with a down gap and never recovered and steadily went down and finally ended the day with a huge loss of 207 points. It was already into correction mode and it has intensified today, it decisively fell below its short term moving averages on the daily chart, it is still making lower top & bottom on the line & bar chart and most importantly four out of five important technical indicators is negative, therefore all together it is highly concerning and pointing that it can further go down from here in coming days. The short term chart setup and technical indicators are very weak now but it is still in the long term uptrend and it is buying on decline market in general but in light of deep correction it is now sell on the rise market for the time being. Furthermore in view of volatility, negative technical indicators and deepening correction it is suggested to be extremely alert and cautious in the, long trade on decline but it would be better to avoid long trade till visible sign of correction completion emerges because sometimes correction gets ugly also as it  happened today. So watch out for a positive signal to initiate long trade.

Moving down from here its support points could be at 19441---19417---19385---19372---19356---19327---19323----19303.60—19300----19245----18887.60(figures may change), it may bounce back from any of these points and resume the up move again. It was already into correction mode and it  deepened today and break below each support point will weaken it further, there is a good chance that it could bounce back from 19441 but break below it could be a bad sign, break below the range of 19385---19372---19356---19327---19323---19303.60---19300 may trigger fresh fall and break below 19245 will get it into deep and long corrective mode and finally break below 18887.60 may accelerate the fall.. 

Moving up from here it may face resistance at 19558----19641----19708---19775---19830---19858---19879---19925---19991.85---20160---20236---20390---20719 it may correct at any of these points and then may resume the up move again or rally can fizzle out also. Please note that 19558(figure may change) is its pullback threshold point and if it closes above it and sustain then it could give a up rally, else down move may continue with in between relief rallies. It will get out of corrective mode if it closes above 19830 and sustains and then it is expected to pick up good up momentum again.   

IMPORTANT NOTE:-Long trade below 19423 could be a risky bet for the day. Please note that as of now technical Indicators are pointing towards moderate to sharp fall in coming days and it can possibly hit the range of 19000---18700 on the downside.

TRADING TIPS:--

1. For safe traders it is suggested to avoid long trade till correction completion sign emerges or it closes above 19755. However, aggressive traders can try long trade on decline near or within the range of 19420----19303 but not below it with a stop loss of 19220 or if it moves above 19565 and maintain for some time with a stop loss of 19500. Please note that long trade could be a risky bet for the day as correction has deepened.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but as it is into correction mode now, therefore short trade 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 19670----19730 with a stop loss of 19780 or sell if it does not move above 19563.10 with a stop loss of 19620 or if it moves below 19423 with a stop loss of 19480 .It could be a risky trade mind you 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.