A TECHNICAL VIEW ON CNX-NIFTY FOR—23.9.2022

 

CNX-NIFTY

 Open-17609.65--High—17722.75--Low-17532.45---Close-17629.80 on 22.9.2022.

Support: 17530.85/17490.70/17484.30/17429.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                                                                                                                                                           

Resistance: 17639.50/ 17759.30/17777.65/17797/17860/17920/17947.55/17992.70/18096.15/18112.60/18114.65/18217/18342.05/18350.95/18604.45—19329.

 (Bold and underlined figures are most important)

It opened with a down gap but filled the gap during the day and gave both side swing but finally ended the day with a loss of 88.50 points. It is into deep short term corrective mode and whatever up move it may witness would be a pullback move as of now.

It is below all its short term moving averages now which is placed in the range of 17810----17687(this range will change every day) for 23.9.2022, it has broken below its major down trend line today which is at 17720(it will change every day) for 23.9.2022 and most importantly it made lower top & bottom on the line and bar chart both, all together these developments are very weak sign and indicate further fall ahead, provided it does not bounce back sharply in next 3-4 trading sessions. Please note that for the continuation of the up move it has to remain above all the aforesaid parameters and then to pick up strong up momentum it has to move above its critical points of 17920 &18114.65 and sustain on the closing basis else it may drift down. It is exhibiting high volatility and every time it moves up it fails to sustain at the higher levels which clearly shows inherent weakness in it and this potentially indicates that it is most likely to head downward in coming days. Going down from here it has bed of strong support in the range of 17408.74---17387.15---17377---17354.05---17345.20 and then important support is at double bottom of 17166--17161 you would recall that it bounced back from this range some time back 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 will jeopardize the uptrend and 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 still looks o.k. as of now but the short term technical setup is very weak, as it is still into deep correction mode. Furthermore all the four important technical indicators are distinctly weak, which is highly concerning and can drag it down. Please note that if these indicators do not improve fast and it can improve only if it gives good and sustained up move for the next few day, but looking at last few days price movement it seems less likely to happen, therefore further fall from here cannot be ruled out in fact it looks inevitable in coming days provided it do not move above its critical points as mentioned in the above paragraph.

In view of the above observation, it is still into long term uptrend but into deep short term correction mode now, therefore please note that it has turned sell on the rise market now; so it is suggested to avoid long trade till a visible sign of correction completion emerges. Therefore safe traders can try long trade only once it closes above 17920 and sustain or after correction completion sign emerges else avoid long trade. But aggressive traders can try long trade on decline near 17530 with a stop loss of 17480 or near or within the range of 17408.74---17387.15---17377---17354.05---17345.20 with a stop loss of 17290 and then near 17160 with a stop loss of 17070 for pullback gains. Please note that in general long trade in a corrective market for pullback gains could a risky affair because pullback rallies are treacherous in nature and can end abruptly trapping the traders unaware but should be tried at the critical juncture. Since it is in correction mode therefore selling on the rise or sell on price breakdown strategy should be adopted till correction completion. Sell on the rise near or within the range of 17775--17817 with a stop loss of 17860 or sell if it moves below 17480 and then below 17290 with a stop loss of 17550 & 17390. It is into short term correction mode but medium and 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.