A TECHNICAL UPDATE ON CNX-NIFTY—4.8.2023

 

CNX-NIFTY

 Open-19463.75--High—19537.65-Low-19296.45--Close-19381.65on 3.8.2023.

Support: 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: 19450/19498/19523.60/ 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 continued with the sharp down move for the 2^nd day in a row and ended the day with a loss of 144.90 points. It was already into correction mode and it is intensifying, it is decisively below all its short term and below few medium term moving averages on the daily chart, it is  making lower top & bottom on the line & bar chart, it has broken its rising trend line today  and most importantly all the five important technical indicators are  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 extremely weak now but it is still in the long term uptrend and it is buying on decline market in general but in light of on-going deep correction it is now sell on the rise market. Furthermore in view of volatility, negative technical indicators and deepening correction it is suggested to avoid long trade till visible correction completion sign emerges because sometimes correction gets ugly also as it is happening for the last two days and this may continue in coming days also with in between short relief rallies and  may seek much lower levels. So watch out for a positive signal to initiate long trade.   

Moving down from here its support points could be at 19372---19356---19327---19323----19303.60—19300----19296---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 is deepening and break below each support point will weaken it further, break below 19303.60---19296 may trigger fresh fall and break below 19245 & 19234.40 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 19417----19461----19562----19570---19644----19653----19674----19727---19775---19830---19853---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 19461(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. 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 19252 & 19234 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---18650 on the downside. It is suggested to avoid long trade for now.

TRADING TIPS:--

1. For safe traders it is suggested to avoid long trade till correction completion sign emerges or if it closes above 19670. However, aggressive traders can try long trade on decline near 19303 but not below it with a stop loss of 19220. Please note that long trade could be a risky bet for the day as correction is deepening.

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 19490----19520 with a stop loss of 19570 or if it moves below 19296 with a stop loss of 19400 .

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.