Commodities

Monday, 11 October 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---12.10.2021

 

CNX-NIFTY

 Open—17867.55--High—18041.95—Low—17839.10---Close-18945.95 on 11.10.2021.

Support:17920/17792.95/7756/17700/17630/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.                                                                                                                                                           

Resistance: -17947.65/17971/18027/18042/18081/18137/18254/18548/19303.70/19575/20390.09.          

 (Bold and underlined figures are most important)

It continued the up move today and made a new all-time high of 18041.95 but retreated and closed just below the previous all-time high of 17947.65 with a gain of 50.75 points. Please note that as long as it holds 17903 & 17849 on the closing basis up move should continue with intermittent correction. It is in strong uptrend. Moving up from here its upside target point or stiff resistance points could be at 17947.65---17971---18042---18082---18137---18254---18548(figures may change) and it could react from any of these points and then may resume the uptrend again which may please be noted. Similarly moving down its critical support points could be at 17903---17873---17856---17849---17792.95---17724---17650---17558---17445---17358---17326(figure may change), it may bounce back from any of these points, but break below the range of 17903---17873---17856---17849,will push it into very short term correction mode, break below 17724---17650 & 17558 will weaken it further and push it into  short term correction mode, sustained  break below 17452 on the closing basis will indicate that the on-going uptrend may be in jeopardy and sustained break below 17326  may accelerate the fall. Most importantly please note that its last lair of solid support range is 17305---17252---17177(figures will change every day) sustained break below this range on the closing basis could push it into deep short term or medium term correction mode.

It is important to mention here that its long term technical setup is still good for the uptrend to continue. The short term bias has also turned positive, but certain important technical indicators is still giving weak signal on the daily chart which may drag it down in coming days if the indicator does not improve. Therefore one has to be cautious and alert in the long trade till the indicators turn positive.

In view of the above observation,  long trade can be tried if it moves above 17947.75 and maintain for some time or on decline at appropriate points or near 17849 but not below it. Please note that long trade below 17849 could be a risky affair for the day. It is in the long term uptrend but correction always happens, therefore short trade can also be attempted on the rise and at appropriate point or can be tried on the price breakdown for taking advantage of the intraday gains. But please be extra careful in short trade because it is in a strong uptrend. Please be extra alert in the 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 if it moves above 17947.75 and maintain for some time with a stop loss of 17870. It is for both the traders.

Or

Buy on decline at appropriate point or near 17849 but not below it with a stop loss of 17780. It is for both the traders.

2. Sell if it does not move above 18042 in first one and half hour of trade with a stop loss of 18100. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17780 and maintain for some with a stop loss of 17860. 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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