Monday, 17 October 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—18.10.2022

 

CNX-NIFTY

 Open-17144.80--High—17328.55--Low-17098.55---Close-17311.80 on 17.10.2022.

Support: 17298/17291/17140/17006/16995/ 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: 17345.20/17354.05/17387.15/17429.70/17484.30/17490.70/17530.85/17639.50 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 today’s and 14.10.2022 gap during the day and finally ended the day with a gain of 126.10 points. It is exhibiting huge volatility which is not a good sign for a steady up move. It is still into major correction mode as it is below its threshold point of 17408.75 but at the same time it is well above its pullback threshold point of 17066 and its long term moving average range of 17088—16799(figure will change every day) which is a positive sign and as long as it sustain above these points it can continue to inch up, but  to get back into steady up move grove again it has to move above its most important and critical points of 17354---17387 & 17408.75 and sustain on the closing basis, else weakness may persist which can drag it down eventually. It is important to mention here that the long term moving average range of 17088—16799(figure will change every day)  is a very strong support range for it and it has bounced back from this range quite often in the near past but coming back near or within the range again and again in a short span of time is a very weak sign, furthermore certain important technical indicators as of now suggest that eventually it is going to break this range and if it does so then fall may accelerate which may be kept in mind. Moving up from here it may find stiff resistance at 17333---17345---17354---17387---17408.75. Similarly going down from here it may find good support at 17268---17196---17168---17088---17066---17024---16950---16908---16883---16794---16640---16563---16487---16296---15870---15765.

Its short term technical setup is still looking slightly weak, but the important thing is out of four important technical indicators three has turned positive on the daily chart, which is a good sign. Therefore it seems that it could continue the up move provided it moves above its critical points of 17354---17387 & 17408.75 and sustain on the closing basis else it may drift down again. The undertone is mixed as of now.

In view of the above observation,  for safe trader’s long trade can only be tried once it closes above 17408.75 or on decline near or within the range of 17088---17066 with a stop loss of 16980. But aggressive traders can try long trade if it moves above 17354 and maintain for some time with a stop loss of 17260 or also on decline near or within the range of 16890-----16799 with a stop loss of 16740, 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 it can be tried at the most critical and important points. Since it is in major correction mode therefore short trade can also be tried on the rise near or within the range of 17480---17520 with a stop loss of 17560 or sell if it moves below 17268 with a stop loss of 17335. It is into major correction mode and it keep threatening its long term trend time and again which is not a good sign.

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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