CNX-NIFTY--A TECHNICAL VIEW---12-10-2018

 CNX-NIFTY

Open-10169.80—High-10335.95---Low—10138.60---Close—10234.65 on 11-10-2018

Support:10198/10180--170/10137---10094--10033/9951.90/9792/9740/9687.55/9685.55/9448/9408/9341/9119.20.

Resistance: 10276.30/10283.23/10313.56/10378.65/10417.80/10478.60—482.35/10530.70—10560/10631---637/10784.

(Bold figures are very important)

                                                                                      

 Further to my last post of 8.10.18 as envisaged it made a short bottom of 10198.40 on 8-10-18(near the first short covering range of 10180---170) and as expected gave pullback but a day after on 10-10-18 which took it to 10482.35, a shade above the 2^nd expected sell point(sell points were 10418/478/530 see my last post). On 11-10-18 it opened with a huge downside gap at 10169.80 breaking the earlier bottom of 10198.40 and made a low of 10138.60 but it filled the gap it created today during the day which was at 10318.25 and finally closed with a loss of 225.45 points at 10234.65. You are well aware that the pullback rallies in a down trend market are treacherous in nature and end abruptly trapping the trader unaware and this is what happened  today, therefore going against the trend is not a prudent idea, so long trade should be avoided for now. Looking at the overall technical setup it is very much likely that it will break 10000 level for sure as of now but since it has bed of support in the range of 10180---10137---10033 and some technical indicators also pointing that it may move sideways to up for some time before breaking the 10000 mark, so till then it may move in an under-noted range for some time. In view of the above one may structure their both side trade with the help of under noted range but be cautious in short trade as well.   

1. Long Range:-10730----10560----10530---10482.35----10313--10180—170---10137----10033.

2. Medium Range:-10560----10482.35----10378.65---10313----10180—170---10137----10033.

3. Short Range: - 10482.35----10378.65---10313----10180—170---10137----10033

Kindly note that if it moves above 10560 and sustain then it may consolidate  and if it moves above its long term moving averages which is in the range of 10975—10730 for 12-10-18(it changes every day) and sustains then it may regain up momentum. Therefore short trade should be avoided above 10560 and can be initiated again if it sustains below 10530. I once again repeat that the trader can initiate both side trade with the help of the above mentioned range, but since the trend is clearly down therefore long trade for pullback is not suggested, sell on the rise would be a better trade to do but with caution. The possible bottom formation range will remain the same as mentioned in my last post of 8-10-18.

Remark: - The trend is down and it seems that it has already slipped into the bear market if it does not claw back above 10560 and then above its long term moving averages in a shortest possible time and sustain, therefore long trade should only be attempted if it moves and sustain above 10560 or after the on-going fall is arrested and it gives visible sign of bottoming out. As of now sell on the rise strategy should be adopted.

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 favorable  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 is of spot market.

Contact me for strategic guidance to enter and exit trade.