A TECHNICAL VIEW ON CNX-NIFTY FOR—4.8.2022

 

CNX-NIFTY

 Open—17349.25--High—17407.50—Low—17225.85---Close-17388.15 on 3.8.2022.

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

Resistance: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 flat to positive note and went up further and then sharply moved down but finally closed with a gain 42.70 of points. It closed above its critical & important points of 17354.05 &17387.15 today which is a hugely positive sign and if it holds these points on the closing basis it will pick up strong up momentum. It is important to mention here that it has been rising vertically for last 6 days in a row so it is vulnerable for correction also and it may creep in anytime which may please be noted. But it is exhibiting robust strength therefore up move is likely to continue with intermittent down correction provided it holds the key points. 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 and then may resume the up move again. Similarly moving down its key support points would be at 17387.15---17354.05---17298---17225----17172.80---17179.90(this figure will scale up if it moves above 17407.50) 17158.25----17140---16894. Please note that, sustained break below 17387.15 & 17354.05 would be a warning sign, break below 17179.90 may push it into short correction and break below 16882.60 may deepen the correction. It is suggested to avoid long trade if it closes below 17354.05 and can initiate long trade again once it bounces back above 17387.15.

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 very positive sign. Since it crossed its critical and important points of 17354.05 &17387.15, therefore as long as it holds these points it is expected to show strength and the up move is likely to continue with in between down correction. The second and last strong support range is between 17179.90---17172.80---17158.25---17140 and sustained break below this range could jeopardize the on-going up rally which may please be noted. It is a buy on dip market for sure 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 17408 and maintains for some time with a stop loss of 17320 it is suggested to avoid buy on decline for the day. But aggressive traders can also try buy on decline near or within the range of 17179.90---17172.80---17158.25---17140 but not below it with a stop loss 17100. Please note that long trade below 17354.05 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 17550---17570 with a stop loss of 17630 or sell if it moves below 17140 with a stop loss of 17244. 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.