A TECHNICAL VIEW ON CNX-NIFTY FOR---1.11.2021

 

CNX-NIFTY

 Open—17833.05--High—17915.85—Low—17613.10---Close-17671.65 on 29.10.2021.

Support:17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.                                      

Resistance: -17763/17792.95/17884.60/17947.65/17968.50/18041.95/18342.05/18604.50.           

 (Bold and underlined figures are most important)

It opened on a negative note and crossed its yesterday’s close also but could not sustain and plunged down sharply within minutes and hit a low of 17613.10 but bounced back sharply for a while, but eventually closed with a loss of 185.60 points. It is into deep short term correction mode  , which is a  very weak indication and it could last for few days/weeks, furthermore it is also below its first 4 top point of its critical support range of18064---17980---17887---17860---17772---17702---17628---17452(figures will change every day) which is very concerning, it may bounce back from any of the remaining points  but sustained break below the range will put the on-going uptrend in jeopardy and it may see accelerated fall. Please note that it will regain up momentum only if it closes above this range and sustain. Moving down further its other important support points are at 17326.10---17254.20---16701---16565.60---16500(figure may change), please note that sustained break below 16500 will put the long term uptrend in potential danger. It is important to mention here that it could come out of corrective mode if it closes above 18332.70 and sustain, but if it moves above 17847.10 (figure may change)and sustain on the closing basis then it may  stage a pullback rally again, else down move may continue with in between short up move. However moving up its critical resistance points could be at 17947.65---17992---18028---18078.55---18109---18226---18286----18302.75---18332.70---18370---18407---18454---18478---18512---18525---18550---18605(figures may change) and it could react from any of these points and then may move up again or may break down also which may please be noted. Kindly note that now it is a sell on the rise markets till visible sign of correction completion emerges.

It is important to mention here that its long term technical setup is still looks good for the uptrend to continue as long as it holds 16500(figure will change every day). It is into deep short term correction mode now and moved below its few critical support points also as mentioned above therefore further fall cannot be ruled out if it remains below it. Furthermore please note that few technical indicator are giving weak indication which is also concerning and may accelerate the fall in coming days. Since it is in corrective mode therefore sell on the rise strategy should be adopted till visible sign of correction completion emerges. It is suggested to avoid long trade as of now.

In view of the above, it is into correction mode therefore safe traders can try long trade only if it closes above its pullback threshold point of 17847.10(figure may change) or its correction completion threshold point of 18332.70 or if it gives visible indication of correction completion at the lower levels. It is suggested to avoid long trade for now. However for possible pullback gains, aggressive traders can try long trade if it holds 17613 for some time or can try buy on decline near 17450 but not below it. I caution here that long trade in a corrective mode could be a highly 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 be attempted on the 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 if it holds 17613 for some time with a stop loss of 17580. It is for the aggressive traders and could be a highly risky trade.

Or

Buy on decline near 17450 but not below it with a stop loss of 17400. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 17885---17920 with a stop loss of 17950. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17613 and maintain for some time with a stop loss of 17680. 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.