CNX-NIFTY
Open-17770.40--High—17919.30--Low-17744.40---Close-17816.25
on 20.9.2022.
Support:17797/17777.65/117759.30/17639.50/
17530.85/17490.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 17860/17920/17947.55/17992.70/18096.15/18112.60/18114.65/18217/18342.05/18350.95/18604.45—19329.
(Bold and underlined figures
are most important)
It opened with an
up gap and went up further and in the process as envisaged it filled the gap it created on 16.9.2022 and finally ended the day
with a gain of 194 points. But
please note that the gap it created today is still there and if it makes an
effort to fill this gap in next 3-4 trading
session which is technically possible then it could come down to 17667 level, but if it does not
fill the gap in the stipulated time then chances of filling the gap will recede
for the time being, which please note.
As anticipated it has bounced back above its short term moving averages, decisively above its major down trend line and also above its important range of 17690---17812(this range will change every day) today, in a stipulated time which is a positive sign, but it has to be seen for the next 3-4 trading sessions whether it sustains above these parameters or not. Furthermore to pick up strong up momentum it has to move above its critical points of 17920 &18114.65 and sustain on the closing basis in the next 1-2 trading session else it may drift down again. It did went very close to 17920 intraday today but could not cross and closed way below it which is a weak sign. However, moving up from here it will face resistance at 17920---17951.75---17963---17992.70---18096.15----18114.65---18217---18350.95---18604.45.Similarly moving down most importantly it has to hold the range of 17812---17690(this range will change every day) to keep the hope alive for the continuation of the up move. Going down further it has bed of support in the range of 17408.74---17387.15---17377---17354.05---17345.20 and then important support at double bottom of 17166--17161 you would recall that it has bounced back from this range recently couple of times; therefore till it holds this range chances of regaining the up move may still be alive, but sustained break below this range on the closing basis may begin a steady down move and break below the double bottom of 17166—17161 may accelerate the fall, which may please be noted.
The long term technical
setup looks o.k. as of now but short term setup is slightly dicey, as it is
still in correction mode and today’s sharp rise was a pullback move only. Please
note that it can get out of corrective mode if it closes above 17951.75 and sustain. Furthermore all the
important technical indicators are still weak except for one on the daily
chart, which is concerning and can drag it down, if these indicators do not
improve fast, but the way it rallied today, if it keep this momentum on for the
next few days then the other indicators may also turn positive and up move can
continue else it can start drifting down again.
In view of the above observation, for
safe traders long trade can only be tried once it closes above 17920 and sustain else avoid. But
aggressive traders can try if it holds the range of 17812---17690 for some time with a stop loss of 17650 or can buy on decline near 17540 with a stop loss of 17470. Please note that long trade
below 17690 could be a risky bet for the day. Although it is in a long term
uptrend but still in corrective mode, therefore short trade can also be tried
after a reasonable rise or on the price breakdown for intraday corrective
gains. Sell on the rise near or within the range of 17950---17990 with a stop loss of 18040 or sell if it moves below 17650 and then below 17485
with a stop loss of 17750 & 17550.
The short term trend is in corrective mode, but medium and long term trend is
still 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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