A TECHNICAL VIEW ON CNX-NIFTY FOR---21.2.2022

 

CNX-NIFTY

 Open—17236.05--High—17380.80—Low—17219.20---Close-17276.30 on 18.2.2022.

Support:17216.10/17043.65/16891.70/16836.80/16809.65/16782.40/16701.65/16565.60/16410. 

Resistance: -17326/17354.05/17387.15/17452.90/17490.60/17613.15/17639.50/17794.45.

 (Bold and underlined figures are most important)

After making an all-time high of 18604.45 on 19.10.2021 it corrected sharply and made bottom at 16410.20 on 20.12.2021 and then bounced back but could not surpass the previous high. It is in a corrective mode now; long term uptrend seems intact but threatened below 17388 and if it remains below this mark then it may fall further from here. However moving down it has bed of supports in the range of 17100---16600---16410 and it could bounce back from this range, but sustained break below 16605(figure can change) will potentially threaten the long term uptrend and break below 16410 may accelerate the fall, therefore the above range could be considered a value range.  

It is into corrective mode now and some important technical indicators are also weak on the daily and weekly chart which indicates that it could fall further from here if these indicators do not improve. Moving down the critical supports point could be 17101.95---17043---16928---16809.65---16782---16600---16410, it could bounce back from any of these points and as long as it hold 16928 chance of up move is there but sustained close above 17388 will only keep the hope alive that it can regain smooth up momentum.  

In view of the above observation for safe traders it is suggested to try long trade once it closes above 17388, however aggressive traders can try long trade on decline also at above mentioned critical points with strict stop losses because it is in a corrective mode and rise in a corrective mode could fizzle out abruptly also, so be alert and careful in the long trade. As of now it is suggested to adopt sell on the rise strategy or sell on the price breakdown till it gives visible indication of correction completion.

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.

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.