Monday, 12 September 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—13.9.2022

 

CNX-NIFTY

 Open-17890.85--High—17980.55--Low-17889.15--Close-17936.35 on 12.9.2022.

Support: 17925.95/17920/17860/17797/17794/17777.65/17759.30/17639.50/17490.70/17485.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                                                                                                                                                           

Resistance: 17947.55/17992.70/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.

 (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 103 points. But please note that the gap it created on 8.9.2022 is still there and if it makes an effort to fill this gap in next 1-2 trading session which is technically possible then it can come down to 17650. Please note that if it does not fill the gap in the stipulated time then chances of filling the gap will recede for the time being. It is showing good strength and most importantly it has closed above its critical resistance point of 17920 today which is hugely positive. Kindly note that for the continuation of the up move it has to sustain above 17920 on the closing basis and if it holds it then it could retest it’s all time high of 18604.45 or may go beyond it also else it may start drifting down. Moving up its key resistance points would be at 17956.50---17992.20---18114.65---18350.95---18604.45. Similarly moving down it will find good support at 17920---17860---17797---17788----17710---17676---17624---17599 break below17920 will be an extreme alert point, break below 17860 can push it into very short corrective mode, break below 17797 & 17788 will weaken it further, break below 17700(down trend line)will be a danger point and break below 17676 & 17624 may trigger fresh fall and finally sustained break below 17599 on the closing basis may accelerate the fall, going down further it has a bed of strong support in the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90 you would recall that it has bounced back from this range recently couple of times; therefore till it holds this range chances of up move may remain intact, but sustained break below this range on the closing basis may begin a steady down move which may please be noted.

The technical setup is looks good., although it closed shade above its most critical resistance point of 17920 today which is a positive sign but it has to be seen for the next 3-4 days whether it will sustain above it or not because earlier also it closed above it but fell below again after two days. Please note that out of four important technical indicators except for one all are still showing weak sign on the daily chart despite firm price movement, therefore if these indicators do not turn positive shortly then weakness in indicators may come into play which can drag it down, but the positive point here is that as of now the price pattern is strong and not showing any sign of breaking down. Please note that if price pattern continues to be on the up move for next few more days then indicators may also turn positive and it is likely to continue the up move then else it could be a dicey situation.

In view of the above observation for safe traders long trade can be tried at current market price if it holds 17920 for some time with a stop loss of 17880 and it is suggested to avoid buy on decline trade for the day. But aggressive traders can also try long trade on decline near or within the range of 17736---17670 with a stop loss of 17580. Please note that long trade below 17920 could be a risky bet for the day. Although it is in the long term uptrend but short trade can also be tried after reasonable rise or on price breakdown for intraday corrective gain. Sell on the rise near or within the range of 18000---18030 with a stop loss of 18070 or sell if it moves below 17880 with a stop loss of 17940. The short, medium and long term trend looks o.k. 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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