A TECHNICAL VIEW ON CNX-NIFTY FOR—12.8.2022

 

CNX-NIFTY

 Open—17711.65--High—17719.30—Low—17631.95---Close-17659 on 11.8.2022.

Support:17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.      

Resistance:17794.60/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.

 (Bold and underlined figures are most important)

It opened with an up gap and went up further and finally ended the day with a decent gain of 124.25 points. Please note that the gap it created today is still there and if it makes an effort to fill the gap in next 3-4 trading session which is technically possible then it can come down to 17566 levels, but if it does not fill the gap in stipulated time then chances of filling the gap will recede. It is exhibiting good strength but it will face stiff resistance for the day from its rising channel at 17705(it will scale up every day) and from its major down trend line at 17785—805(figure will scale down every day), sustained breakout above the down trend line will open up the big upside range which please note. It is on a strong technical footing therefore, it is likely to continue the up move with intermittent down correction. 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 17417.83(this figure will scale up if it moves above 17719.30) ---17387.15---17382---17354.05---17298---17172.80----17158.25----17120. Please note that break below 17417.83 will push it into very short correction mode, sustained break below the range of 17388.15---17387.15---17382--17354.05 on the closing basis may jeopardize the on-going uptrend, sustained break below 17120 may deepen the correction  and finally break below 17100 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 it is suggested to avoid long trade below 17382. 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 17719 and maintains for some time with a stop loss of 17625 or can try buy on decline  at appropriate points or near 17382 but not below it  with a stop loss of 17340. However, aggressive traders can also try long trade if it maintains above 17659 for some time with a stop loss 17600. 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 17760---17785 with a stop loss of 17840 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, medium and long term trend is positive as of now.

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.