A TECHNICAL VIEW ON CNX-NIFTY FOR—3.8.2022

 

CNX-NIFTY

 Open—17310.15--High—17390.15—Low—17215.85---Close-17345.45 on 2.8.2022.

Support: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:17354.05/17387.15/17490.60/17639.50/17794.60/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.

 (Bold and underlined figures are most important)

It opened on a negative note and gave both side wild swings during the day and finally closed with a meager gain of 5.40 points. It did cross its most important points of 17354.05 &17387.15 intraday but could not close above it which is slightly dicey. Furthermore it had 5 days of vertical rise in a row and today’s volatility indicates that it could correct from here. But it is exhibiting good strength therefore up move is likely to continue with intermittent down correction. Moving up from here its key resistance points would be at 17354.05---17387.15----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 and then may resume the up move again. It is important to mention here that to pick up strong up momentum it has to move above 17354.05 & 17387.15 and sustain on the closing basis. Similarly moving down its key support points would be at 17298---17215---17172.80---17165(this figure will scale up if it moves above 17390.15) 17158.25----17140---16894---16843---16793.85---16719.45---16703.30---16483.85---16438.15. Please note that, break below 17165 may push it into short correction and break below 16869 may deepen the correction. It is suggested to avoid long trade if it closes below 17135 and can initiate long trade again once it bounces back above 17244.

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, so till it holds its range of 17172.80---17165---17158.25---17135 on the closing basis the up move is likely to continue with in between down correction. It is important to mention here that if it has the desired strength it is not likely to break 16719.45 levels on the downside on the closing basis in severe correction also, which please note. It is a buy on dip market for sure as of now till it signals otherwise.

In view of the above observation long trade can be tried if it moves above 17391 and maintains for some time with a stop loss of 17320 or can buy on decline near or within the range of 17172.80---17165---17158.25---17135 but not below it with a stop loss 17120. 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 17520---17550 with a stop loss of 17610 or sell near if it does not move above 17390 even in intraday in first hour of trade with a stop loss of 17450 or sell if it moves below 17135 with a stop loss of 17190. 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.