A TECHNICAL VIEW ON CNX-NIFTY FOR---23.9.2021

 

CNX-NIFTY

 Open—17580.90--High—17610.45—Low—17524---Close-17546.70 on 22.9.2021.

Support:17458/17436.50/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.  

Resistance: -17630/17756/17792.95/18027/19575/20390.09.               

 (Bold and underlined figures are most important)

It moved in a short range today and finally closed with a meager loss of 15.35 points. It is into very short term correction mode now. Its critical points on the downside are 17503.27---17458---17436.28---17240.23(figures may change), break below 17458 & 17436.28 (figure may change) on the closing basis will weaken it further and sustained break below 17240.23 on the closing basis will push it into deep short term corrective mode which could further drag it down with accelerated pace. But if it holds 17436.28(figure can change) then there is a chance that pullback may last few sessions. Similarly  moving up its critical points are at 17665.81 17700,it could come out of corrective mode if it moves above 17665.81 and may resume the steady up if it moves above 17700(figure may change) and sustain on the closing basis then it could retest its all-time high of 17792.95 or may go beyond also. Apart from the above mentioned support and resistance levels it has the following critical support and resistance levels also.

Critical support points:--17503.27---17458.56---17436.28---17170---17084---17055---16977---16922---16898.

Critical resistance points:-17615---17630---17665.81---17683---17700---17792.95.

 It is important to mention here that its long term technical setup is still good for the uptrend to continue. But it is into short term correction mode now and furthermore few important technical indicators are giving weak signal on the daily chart, which is concerning and if it does not bounce back sharply in next 2-3 trading sessions and moves above it critical points then it could witness moderate to severe fall in coming days/weeks. I once again repeat that break below 17458 &17436.28 could weaken it and break below 17240.28 on the closing basis could accelerate the fall, similarly if it maintains above 17436.28 then there is hope that it could give a relief rally and may come out of corrective mode and resume the uptrend else it will resume down move again. The long term bias is still positive as of now but it is into short term correction now with terribly weak signal from some of the important technical indicators, so watch out for visible signs of correction completion before one goes for fearless long trade. Please be extraordinarily cautious in the long trade at this point of time

In view of the above observation, safe traders should avoid long trade till it comes out of corrective mode or correction completion sign emerges at the lower levels. However aggressive traders can try long trade if it moves above 17590 and maintain for some time  or  buy on decline at appropriate points or near 17436 but not below it. It is in corrective mode, therefore short trade can also be tried after reasonable rise or can be tried on the price breakdown for taking advantage of the intraday gains.

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.

TRADING STRATEGY (Suggested)

1. Buy if it moves above 17590 and maintain for some time with a stop loss of 17510. It is for the aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 17436 but not below it with a stop loss of 17385. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 17670---17700 with a stop loss of 17730. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17385 and maintain for some with a stop loss of 17450. It could be a highly risky trade but worth trying for intraday gain.

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 are of spot market. 

Contact me for strategic guidance to enter and exit trade.

  Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.