Thursday, 15 September 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—16.9.2022

 

CNX-NIFTY

 Open-18046.35--High—18096.15--Low-17861.50--Close-17877.50 on 15.9.2022.

Support: 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: 17920/17947.55/17992.70/18112.60/18114.65/18217/18342.05/18350.95/18604.45—19329..

 (Bold and underlined figures are most important)

It opened on a positive note and went up further but could not sustain at the upper level and slipped down and finally ended the day with a loss of 126.35 points. Please note that for the continuation of the up move and to retest its all-time high 18604.45 or to go beyond, it has to sustain above its two critical points of 17920 & 18114.65 on the closing basis. Today it went near 18114.65 but could not cross it, furthermore it was above 17920 levels for the last three days but closed well below it today which is a weak sign. Please note that if it fails to bounce back above 17920 & 18114.65 and sustain in next 4-5 trading session then it may start drifting down. However moving up it will face resistance at 17920---17951.75---17992.70---18096.15---18114.65---18217---18308---18350.95---18503---18604.45---19329. Similarly moving down it will find good support at 17876.68---17797---17759----17704---17695---17624 it has slipped into very short corrective mode today as it closed below its threshold point of 17951.75,it is also below its critical point of 17920 and sustained close below it may put the uptrend in jeopardy, break below 17876.68 may weaken it further, break below the range of 17759---17704---17670--17624 may trigger fresh fall with an accelerated pace, 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. It is buying on dip market now as long as it holds 17920 on the closing basis.

The overall technical setup is still looking o.k. as of now. But again out of four important technical indicators now two are weak on the daily chart and the second indicator has turned weak today only which is a bad sign, furthermore it has closed well below its critical point of 17920 also ,therefore all these developments makes it more concerning. I once again reiterate here that if it fails to bounce back shortly above its critical point of 17920 & 18114.65 then it could witness moderate to sharp fall in coming days.

In view of the above observation for safe traders long trade can be tried if it closes above 18115 and avoid buy on decline for the day. But aggressive traders can  try long trade if it moves above 17952 and maintain for some time with a stop loss of 17860 or on decline near or within the range of 17760---17700 with a stop loss of 17610. Please note that the long trade below 17920 could be a risky affair. Although, it is in the long term uptrend but slipped into very short corrective mode today therefore 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 18100---18120 with a stop loss of 18160 or sell if it moves below 17860 with a stop loss of 17955. It slipped into very short corrective mode today, so watch out how this correction culminates, but the medium and the long term trend is up 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 favourable 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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