Commodities

Wednesday, 13 October 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---14.10.2021

 

CNX-NIFTY

 Open—18097.85--High—18197.80—Low—18050.75---Close-18161.75 on 13.10.2021.

Support:18137/18081/17971/17947.65/17920/17840/17792.95/7756/17700/17613/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.                                                                                                                                                           

Resistance: -18197.80/18254/18350/18550/19303.70/19575/20390.09.      

 (Bold and underlined figures are most important)

It gave a robust up move today and hit a new all-time high of 18197.80 and closed with a gain of 169.80 points, which is a positive sign. Please note that as long as it holds the range of 18022---17992---17975---17947.75 on the closing basis then the up move should continue with intermittent correction. It is in strong uptrend now. Moving up from here its upside target point or stiff resistance points could be at 18197.80---18254---18350---18550---18750(figures may change) and it could react from any of these points and then may resume the uptrend again or may break down also which may please be noted. Similarly moving down its critical support points could be at 18022---17992---17975---17947.65---17792.95---17790---17718---17625---17564---17549---17452(figure may change), it may bounce back from any of these points, sustained break below 17947.65 will be an alert point, break below the range of 18022---17992---17975---17947.75,will push it into very short term correction mode, break below 17790---17718 & 17625 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. Most importantly please note that its last lair of solid support range is 17366---17312---17233(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 is also  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. But the trend is up as of now.

In view of the above observation, long trade can be tried if it moves above 18200 and maintain for some time  or can buy on  at appropriate points or near 18022 but not below it. Please note that long trade below 18022 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 18200 and maintain for some time with a stop loss of 18150. It is for both the traders.

Or

Buy on decline at appropriate point or near 18022 but not below it with a stop loss of 17930. It is for both the traders.

2. Sell on the rise near or within the range of 18300---18350 with a stop loss of 18400. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17947.75 and maintain for some with a stop loss of 18030. 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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