A TECHNICAL VIEW ON CNX-NIFTY FOR—10.8.2022

 

CNX-NIFTY

 Open—17401.50--High—17548.80—Low—17359.75---Close-17525.10 on 8.8.2022.

Support:17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                      

Resistance:17639.50/17794.60/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.

 (Bold and underlined figures are most important)

It opened on a flat to positive note and then consolidated through the day finally closed with a gain of 127.60 points. It closed above its key point of 17490.70 is a positive sign and should provide it good strength for the up move if it holds it during the week. Please note that break below 17490.70 could push it little down but as long as it holds the range of 17388.15---17387.15---17382---17354.05     there is no threat to the on-going uptrend. As of now it is on a strong technical footing therefore, it is likely to continue the up move with intermittent correction, which please note. Moving up from here its key resistance points would be at 17797---17920---18114.65---18350.95---18604.45 but in between it could face other resistance points too, please note market could correct from any of these points or earlier also and then may resume the up move again. Similarly moving down its key support points would be at 17490.70---17387.15---17382---17354.05---17298---17286.83(this figure will scale up if it moves above 17548.80) ----17172.80----17158.25----17120---16894. Please note that break below 17490.70 may drag it slightly down, sustained break below the range of 17388.15---17387.15---17382--17354.05 on the closing basis will make a big dent in the on-going up move, sustained break below 17286.83 will push it into very short correction mode, sustained break below 17115 may weaken it further and finally break below 16990.57 may accelerate the fall.

The overall technical setup looks good as of now, furthermore some important technical indicators are positive on the daily chart and few indicators on the weekly chart also it is also making higher top & bottom on the line and the bar chart which is a very positive sign. Therefore the up move is likely to continue with in between correction till it breaks the key levels as mentioned above. In view of the above paragraph for safe traders it is suggested to avoid long trade below 17382  but highly aggressive traders can still try long trade near or within its second and last support range of 17286.83---17172.80---17158.25---17115 ,but it may prove risky which please note. Please note that it is still a buy on dip market as of now till it signals otherwise.

In view of the above observation for safe traders long trade can be tried if it moves above 17548.80 and maintains for some time with a stop loss of 17470 or can try buy on decline but not below 17382 with a stop loss of 17340. However, aggressive traders can also try buy on decline near or within the range of 17286.83---17172.80---17158.25---17115 but not below it with a stop loss 17070. Please note that long trade below 17382 could be a risky bet for the day. Although it is in the uptrend but short trade can also be attempted after a reasonable rise or on the price breakdown for intraday corrective gains. Sell on the rise near or within the range of 17680---17720 with a stop loss of 17770 or sell if it moves below 17340 with a stop loss of 17410. Since it is in uptrend short trade could be a risky bet but worth trying at this juncture. The short term bias is positive and medium and long term bias has also drastically improved but has to be watched out for few days.

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. 

m for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.