Monday, 27 September 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---28.9.2021

 

CNX-NIFTY

 Open—17932.20--High—17943.50—Low—17802.90---Close-17855.10 on 27.9.2021.

Support:17792.95/17756/17700/17630/17458/17436.50/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.                                                                                                                                                           

Resistance: -17920/17947.65/17971/18027/18081/18548/19303.70/19575/20390.09.        

 (Bold and underlined figures are most important)

It opened up on a positive note today and went up further and came pretty close to its all time high of 17947.65 but could not cross it and slipped to make a low of 17802.80 but bounced back again and finally closed with a meager gain of 1.90 points. It is still looking good for the continuation of the up move provided it holds the key levels, but moving up from here its target points or stiff resistance points could be at 17920---17947.65---17971---18027---18062---18081.50---18548(figures may change), it could correct at any of these points before moving up further and it did retreated again for the second day from 17920—17971 range today but it is still o.k. pricewise. It seems that for further steady up momentum it has to cross the range of17920—17971 and sustain on the closing basis. Similarly moving down its critical support points would be at 17800---17792.95---17784---17700---17576.75---17526---17373---17358(figures may change) , break below 17800 &17784 (figure may change) on the closing basis will push it into very short term correction mode, sustained break below 17700 on the closing basis will weaken it further, sustained break below 17576.75 & 17526 will push it into short term corrective mode and sustained break below 17358 on the closing basis could push it into deep short term corrective mode which could drag it down with an accelerated pace. But if it holds the range of 17800---17784 (figure can change) then the up move shall continue with intermittent correction.  

 It is important to mention here that its long term technical setup is good for the uptrend to continue. It is out of corrective mode also but certain important technical indicators are giving weak signal and for the last two days it is not holding the prices at the upper level and breaking previous day’s low, which is concerning, therefore one has to be cautious and alert till the indicators turn positive or it crosses the tough range of 17920--17971.  I once again repeat that till it holds the range of 17800---17784 on the closing basis then it is likely that the up move shall continue. It is suggested to avoid long trade below the aforesaid range. The long term bias is positive as of now. The short term bias is still positive but little caution is to be exercised in wake of the weak technical indicators and weak price patter for the last two days.

In view of the above observation, long trade can be tried if it holds the range of 17800—17784 but not below it or if it moves above 17950 and sustain for some time. However aggressive traders can also try long trade on sharp decline near 17700, but please note that long trade below 17784 could be a risky affair. It is in the uptrend  but intraday corrections always happens as it has been happening for last two trading sessions, therefore short trade can also be attempted after reasonable rise and at appropriate point or can be tried on the price breakdown for taking advantage of the intraday gains. Please note that short trade could be a risky affair as it is in the uptrend, so be alert and watchful in short trade.

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 on decline if it holds the range of 17800-17784 with a stop loss of 17750. It is for both the traders.

Or

Buy if it moves above 17950 and maintain for some time with a stop loss of 17920. It is for both the traders and could be a risky trade.

Or

Buy on decline near 17700 with a stop loss of 17650. It is for the aggressive traders and could be a highly risky trade.

2. Sell it on the rise near 17950 with a stop loss of 17980. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17760 and maintain for some with a stop loss of 17825. 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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.