A TECHNICAL VIEW ON CNX-NIFTY FOR---26.10.2021

 

CNX-NIFTY

 Open—18229.50--High—18241.40—Low—17968.50---Close-18125.40 on 25.10.2021.

Support:18034.35/17968.50/17947.75/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.  

Resistance: -18332.70/18604.50/18778/18817/18950/19505/19549/19575/19639/20390.09/20405/20656.           

 (Bold and underlined figures are most important)

It opened on a positive note and after 4 days fall it could manage to close with a meager gain of 10.50 points today. It is still into very short term correction mode and to come out of it, it has to move above 18332.70 and sustain on the closing basis, here please note that if it remains above 18118.60(figure may change) on the closing basis then chances are that it could stage a pullback rally and can make an effort to come out of the corrective mode and may resume the up move again, else correction may deepen and may continue for some time. But as long as it holds the range of 17970---17894---17798(figures will increase every day) chances of resuming the up momentum will always be there. Moving down its critical support points could be at 18078.55---18028---17875---17860---17775---17724---17452(figure may change), it is already into very short term correction mode now, break below 18078.55---18028 will push it into short term correction mode break below 17860 will push it into deep short term correction mode, break below 17775 will weaken it further and finally sustained break below 17452 on the closing basis will indicate that the on-going uptrend may be in jeopardy. Similarly moving up it will face stiff resistance at 18240---18285.80---18302.75---18332.70---18360---18407---18478---18512---18525---18550---18605---18778---19549---19575---19639(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.

It is important to mention here that its long term technical setup is still good for the uptrend to continue. It is in very short term correction mode now therefore further fall cannot be ruled out if it remains below its critical points as mentioned above. Furthermore please note that few technical indicator are giving weak indication which is also concerning and may accelerate the fall in coming days. It is therefore suggested to be extra alert and cautious in long trade till correction completion sign emerges.

In view of the above, it is still into correction mode therefore safe traders can try long trade only if it closes above its critical points 18332.70 or if it gives visible indication of correction completion at the lower levels. However, aggressive traders can  try long trade if it holds 18118.60 for some time or can try buy on decline near or within the range of 18078.55---18048---18028 but not below it. Please note that long trade in a corrective mode could be a risky affair, therefore one should be extremely cautious in the long trade at this point of time.  It is in the long term uptrend but now in correction mode, 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. Please be extra alert in the short trade because it is in strong long term uptrend as of now.

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 holds 18118.60 for some time with a stop loss of 18070. It is for the aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate point or near or within the range of 18078—18048---18028 but not below it with a stop loss of 17950. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 18250---18300 with a stop loss of 18340. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 18028 and maintain for some time with a stop loss of 18090. 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.