A TECHNICAL VIEW ON CNX-NIFTY FOR—5.9.2022

 

CNX-NIFTY

 Open-17598.40--High—17643.85--Low-17476.45--Close-17539.45 on 2.9.2022.

Support: 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:17639.50/17759.30/17777.65/17992.70/17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.

 (Bold and underlined figures are most important)

After the robust up move on 30.8.2022 most surprisingly it fell down the next two days and ended the week on a negative note, it is exhibiting huge volatility which is not good for a steady market. Please note that it again fell below some of its short term moving averages and most importantly below its major down trend line which is concerning, if it does not bounce back above its major down trend line again in next 3-4 trading session and sustain on the closing basis then it may drift down. However moving down it has a strong bed of 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 may remain intact, sustained break below this range on the closing basis may begin a steady down move which may please be noted.

To get into the steady up move grove it has to move above its major down trend line which is placed at 17730(figure may scale down every day) for the day and sustain above it on the closing basis and then to catch up the strong up momentum it has to move above 17920 and sustain on the closing basis and if it does so then it could retest it’s all time high of 18604.45 or may go beyond it also else it could drift down again. Moving up its key resistance points would be at 17639.50---17777.05--17797---17827---17920---17956.50---17992.20---18114.65---18350.95---18604.45.

The technical setup is still o.k., but it has to be watched over for the next 3-4 trading session whether it gives upside breakout from the major down trend line and then continue the up move or not, because almost all important technical indicators except for one are still showing distinct sign of weakness on the daily chart, therefore if these indicators do not turn positive shortly then weakness in indicators may  come into play and can drag it down, but the silver lining here is that the price pattern is not breaking down. Therefore it seems that it is moving in a range now so wait for the few days for a decisive direction, till then trade the range both ways.

In view of the above observation long trade can be tried if it moves above 17610 and maintain for some time with a stop loss of 17525 or can buy on decline near or within the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90 with a stop loss of 17250. Although it is still in the long term uptrend but in corrective mode now 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 17680----17730 with a stop loss of 17780 or sell if it moves below 17475 with a stop loss of 17560. It is still in short term corrective mode, but medium and long term trend still 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.