Wednesday, 17 August 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—18.8.2022

 

CNX-NIFTY

 Open—17868.15--High—17965.95—Low—17833.35--Close-17944.25 on 17.8.2022.

Support:17920/17797/17794.60/17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                                                                                                                                                           

Resistance: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 positive note and went up further and finally ended the day with a gain of 119 points. But please note that it has been going up for the last 7 days, therefore it is vulnerable for correction also, so be watchful. Furthermore the gap it created 16.8.2022 and on 11.8.2022 is still there and if it makes an effort to fill the gap in next 2-3 and 1 trading session for respective gap which is technically possible then it can come down to 17724 &17566 levels, but if it do not fill the gap in stipulated time then chances of filling the gap will recede.  It is exhibiting good strength and most importantly it has given upside breakout from its major down trend line today which is hugely positive sign and it has opened the big upside range for it. But to sustain the breakout it has to maintain and close above the range of 17800—17785(range will scale down every day) for the day and close below 17765(figure will scale down every day) for the day will push it below the down trend line again. Therefore 17765 is the benchmark point for the day and close below this mark may trigger down slide which please note. It is on a strong technical footing now therefore, it is likely to continue the up move with intermittent down correction. Moving up from here its key resistance points would be at 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. It is important to mention here that it closed above its most critical point of 17920 today and if it sustains above it on the closing basis then it could retest its all time high of 18604.45 or may go beyond it also which please note but break below it on the closing basis could be an alert sign for long trades. Similarly moving down its key support points would be at 17920---17797---17605.53(this figure will scale up if it moves above 17965.95) ---17387.15---17382---17354.05---17309.27---17298---17172.80----17158.25----17100. Please note that break below 17605.53 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 17298 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 17785 for the day. Please note that it is still a buy on dip market as of now till it signals otherwise.

In view of the above observation long trade can be tried if it moves above 17966 and maintains for some time with a stop loss of 17900 or can try buy on decline near  or within the range of  17797--785 but not below it  with a stop loss of 17750. 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 18090---18115 but not above it with a stop loss of 18160 or sell if it moves below 17750 with a stop loss of 17810. 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

Mobile—8240951127/9831313654.

 

 

 


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