A TECHNICAL VIEW ON CNX-NIFTY FOR---8.11.2021

 

CNX-NIFTY

 Open—17935.05--High—17947.55—Low—17900.60---Close-17916.80 on 4.11.2021.

Support:17884.60/17792.95/17763/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.       

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

 (Bold and underlined figures are most important)

It was a short trading session on the auspicious occasion of Deepawali. It opened on a huge positive note but thereafter moved in a very short range and finally closed with a gain of 87.60 points. But it is still into short term correction mode, furthermore it is below its first 3 top point of its critical support range of18143---18059---17963---17886---17860---17823---17793---17747---17452(figures will change every day) which is concerning, it may bounce back from any of the remaining points but sustained break below the 17747 will put the on-going uptrend in jeopardy and sustained break below 17452 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---16585(figure may change), please note that sustained break below 16585 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 today it has closed above its pullback threshold point of 17847.10 (figure may change) again therefore if it sustains above it on the closing basis then it may continue the pullback move and may make an effort to come out of the corrective mode also else it may resume down move again. However moving up from here its critical resistance points could be at 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, 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 16585(figure will change every day). It is into short term correction mode but again bounced back above pullback threshold point, so may give some up move in coming days, but most importantly it is still below its few critical rsistance 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, so be alert in long trades. 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 short term correction mode but above pullback threshold point of 17847.10 which is a slightly positive indication, therefore for safe traders long trade can be tried on decline near 17847.10 but not below it or if it moves above 17950 and maintain for some time. However, aggressive traders can also try long trade on decline at appropriate points or near 17750 and then 17613 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 on decline near 17847.10 but not below it with a stop loss of 17800. It is for both the traders and could be a risky trade.

Or

Buy if it moves above 17950 and maintain for some time with a stop loss of 17900. It is for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 17750 & 17613 but not below it with a stop loss of 17720 & 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 18000---18030 with a stop loss of 18070. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17829 and maintain for some time with a stop loss of 17880. 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.