Tuesday, 6 September 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—7.9.2022

 

CNX-NIFTY

 Open-17695.70--High—17764.65--Low-17587.65--Close-17655.60 on 6.9.2022.

Support: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: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)

It opened with a small up gap and went up further but could not sustain at the upper level and slipped down and finally ended the day with a meager loss of 10.20 points. It is still above its short term moving averages, which is a positive sign but it has been giving whip saw around it quite often; therefore it is to be seen how long it stays above it. It did move above its major down trend line intraday today but at the end closed well below it, which is a concern. Please note that to get into the steady up move grove it has to move above its major down trend line which is placed approximately at 17745(figure may change 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 may drift down again. Moving up its key resistance points would be at 17777.05--17797---17827---17920---17956.50---17992.20---18114.65---18350.95---18604.45. Similarly moving down it will find good support at 17618---17573---17495 break below 17618 will be an alert point and break below 17495 may accelerate the fall, going down it has a 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, 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 still o.k., but it has to be closely watched over the next few days that  whether it gives upside breakout from the major down trend line or not and then continue the up move to cross its important resistance point of 17920 , because almost all important technical indicators except for one are still showing weak sign on the daily chart, therefore if these indicators do not turn positive shortly then weakness in indicators may  come into play which can drag it down, but the silver lining here is that as of now the price pattern is not showing any sign of breaking down. Therefore it seems that it is moving in a range now so please wait for few days for a decisive direction so watch out.

In view of the above observation long trade can be tried if it moves above 17670 and maintain for some time with a stop loss of 17570 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 17280. Please note that long trade below 17539 could be a risky bet for the day. Although it is 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 17780----17820 with a stop loss of 17860 or sell if it moves below 17485 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.

 

 

 

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