A TECHNICAL VIEW ON CNX-NIFTY FOR---4.11.2021

 

CNX-NIFTY

 Open—17947.95--High—17988.75—Low—17757.95---Close-17829.20 on 3.11.2021.

Support:17792.95/17763/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.           

Resistance: -17884.60/17947.65/17968.50/18012.20/18041.95/18342.05/18604.50.          

 (Bold and underlined figures are most important)

It opened on a positive note and moved in a short range but could not sustain at the upper level and slipped down and finally closed with a loss of 59.75 points. It is still into short term correction mode, furthermore it is below its first 5 top point of its critical support range of18125---18039---17946---17860---17859---17793---17715---17452(figures will change every day) which is 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 witness an accelerated fall. Please note that it will regain the steady 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---16566(figure may change), please note that sustained break below 16566 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, it has fallen below its pullback threshold point of 17847.10 (figure may change) today and if it sustains below it then it may resume down move again. However moving up from here its critical resistance points could be at 17847.10---17947.65---17968---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.

It is important to mention here that pullback rallies are treacherous in nature and can end abruptly, as it possibly ended today, so watch out how it behaves in next 1-2 trading sessions. It is therefore suggested that one should be extremely alert and cautious in the long trade initiated for pullback gains.

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 16566(figure will change every day). It is into short term correction mode and pullback rally has possibly ended today and most importantly it is still 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.

In view of the above, it is into deep correction mode and below pullback threshold point of 17847.10 which is concerning, therefore for safe traders long trade can only be tried if it closes above 17847.10 or 18332.70 else avoid. However, aggressive traders can try long trade on decline at appropriate points or near 17715 or 17613 but not below it or can also try long trade if it moves above 17847.10 and maintain for some time. 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 moves above 17847.10 for some time with a stop loss of 17800. It is for the aggressive traders and could be a highly risky trade.

Or

Buy on decline at appropriate points or near 17715 & 17613 but not below it with a stop loss of 17660 & 17580 respectively. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 17950---17980 with a stop loss of 18020. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17780 and maintain for some time with a stop loss of 17855. 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.