Commodities

Friday, 8 October 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---11.10.2021

 

CNX-NIFTY

 Open—17886.85--High—17941.85—Low—17840.35---Close-17895.20 on 8.10.2021.

Support:17885/17855.10/17792.95/7756/17700/17630/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.                                                                                                                                                           

Resistance: -17920/17947.75/17971/18027/18081/18137/18254/18548/19303.70/19575/20390.09.          

 (Bold and underlined figures are most important)

It continued the up move today and closed with a gain of 104.85 points. It is out of corrective mode and also closed above its important point of 17849 which is positive sign, but it is important to mention here that it went near its all-time high of 17947.75 for the 3rd time in last few days but could not cross it so it has made triple top near the all-time high, therefore now it will be a very tough resistance point for it for moving up further, but it is in good uptrend. However if it does not move above 17947.75 levels and sustain on the closing basis then chances of slipping down is also there, so be cautious at this point of time. Moving up from here its upside target point or stiff resistance points could be at 17920---17947.65---17971---18082---18137---18254---18548(figures may change) and it could react from any of these points which may please be noted. Similarly moving down its critical support points could be at 17849---17801---17792.95---17784---17725---17650---17558---17526---17450---17326(figure may change), it may bounce back from any of these points, but break below 17849 will be an alert point, break below 17801 & 17784 will push it back into very short term correction mode again, break below 17725---17650 & 17558 will weaken it further, 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 17274---17220---17145(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. It is out of corrective mode and above its important point of 17849 also but could not cross the all-time high of 17947.75 in the 3rd attempt which is concerning, furthermore certain important technical indicators are giving weak signal on the daily chart which may drag it down in coming days if it does dot move above 17947.75 and sustain on the closing basis. Therefore in wake of weak technical indicators one has to be cautious and extremely alert in the long trade at least till the indicators turn positive or it closes above 17947.75 and sustain on the closing basis. The short term bias has also turned positive now.

In view of the above observation, for safe traders long trade can be tried if it moves above 17947.75 and maintain for some time or on decline near 17849 but not below it. However, aggressive traders can also try long trade on decline near 17725 but not below it. Please note that long trade below 17801 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.

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 17880. It is for both the traders.

Or

Buy on decline near 17849 but not below it with a stop loss of 17775. It is for both the traders.

Or

Buy on decline near 17725 but not below it with a stop loss of 17640. It is for the aggressive traders and could be a slightly risky trade.

2. Sell if it does not move above 17950 I first one and half hour of trade with a stop loss of 17990. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17840 and maintain for some with a stop loss of 17910. 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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