Tuesday, 28 September 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---29.9.2021

 

CNX-NIFTY

 Open—17906.45--High—17912.85—Low—17576.10---Close-17748.60 on 28.9.2021.

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

Resistance: -17756/17792.95/17920/17947.65/17971/18027/18081/18548/19303.70/19575/20390.09.     

 (Bold and underlined figures are most important)

It opened on a positive note today but could not sustain and plunged down and hit a low of 17576.10 for the day and then recovered sharply to close with a loss of 106.50 points. It exhibited huge volatility today which is slightly concerning for the steady up move ,furthermore it  slipped into very short term correction mode, which is a weak sign, moving down further from here its other critical support or possible buying points will be at 17700---17576.75---17526---17373---17358(figures may change) 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(it did bounced back today from 17576.10) and sustained break below 17358 on the closing basis could push it into deep short term corrective mode which could drag it down further with an accelerated pace.  Please note that it could come out of the corrective mode if it closes above 17801 and sustain and if it moves above 17823.40 and sustain on the closing basis then it could retest its all-time high of 17947.65 or may go beyond also. Moving up its target points or stiff resistance points could be at 17801---17823.40---17856---17920---17947.65---17971---18027---18062---18081.50---18548(figures may change).

It is important to mention here that its long term technical setup is still good for the uptrend to continue. But it slipped into very short corrective mode again, furthermore certain important technical indicators are giving weak signal on the daily chart and today there was huge price destruction also but fortunately it recovered but it is very concerning, therefore one has to be cautious and alert in the long trade at least till the indicators turn positive or it crosses the range of 17801—17823.40 and sustain on the closing basis. Therefore it is suggested to avoid long trade below 17823.40. The long term bias is positive as of now.  It is in corrective mode in short term. Please note that if it does not recover fast and move above its critical points mentioned above in next 2-3 days then down move should continue.

In view of the above observation, it is into corrective mode therefore safe traders should avoid long trade in general till correction completion looks visible. However aggressive traders can try long trade if it moves above 17823.40 and maintain for some time or on decline near 17650 but not below it. Please note that long trade below 17823.40 could be a risky affair It is in the uptrend   but in corrective mode now, 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.

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 near 17650 but not below it with a stop loss of 17570. It is for the aggressive traders and could be a risky trade.

Or

Buy if it moves above 17823.40 and maintain for some time with a stop loss of 17770. It is for the aggressive traders and could be a risky trade.

2. Sell it on the rise near 17823 with a stop loss of 17860. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17650 and maintain for some with a stop loss of 17725. 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.

 

 

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