A TECHNICAL VIEW ON CNX-NIFTY FOR—13.10.2022

 

CNX-NIFTY

 Open-17025.55--High—17142.35--Low-16960.05---Close-17123.60 on 12.10.2022.

Support: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: 17140/17291/ 17298/17345.20/17354.05/17387.15/17429.70/17484.30/17490.70/17530.85/17639.50 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 on a positive note and moved in a range for a while and in the late afternoon moved up smartly and finally closed with a gain of 140.05 points. It moved above its pullback threshold points of 17024 & 17066(figure may Change) and also above its long term moving average range of 17086—16794(figure will change every day), which is good sign and as long as long as it holds the aforesaid pullback threshold points pullback rally may extend further else it will drift down again, but to get back into steady up 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. It is important to mention here that going down it will find very strong support from its long term moving average range of 17086—16794(figure will change every day) so it may bounce back from this range as it had done earlier and today also but 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. However moving up from here it will find stiff resistance at 17168----17196---17268---17333---17354---17387---17408.5.  Similarly going down it may find good support at 17024---17066---17086---16908---16883---16791---16640---16563---16487---16296---15870---15765.

Its short term technical setup is still looking weak as it is below some of its short and medium   term moving averages on the daily chart and some below weekly chart also, furthermore out of four important technical indicators one has improved today but three are still weak on the daily chart, which is concerning. Please note that if these indicators do not improve fast it can drag it down further and it can improve only if it gives good and sustained up move and if it fails to give sharp up move in a shortest possible time say in next 1-2 trading sessions and move above its critical points of 17354---17387 & 17408.75 and sustain on the closing basis then it may continue to drift down, chances of sharp up rally is less likely at this point of time. So watch out. The undertone is mixed but with a slight tilt towards downside as of now.

In view of the above observation, it is into major correction mode but moved above its pullback threshold points of 17024 & 17066 and also above its  long term moving average range of 17086—16791(figure will change every day). So long trade can be attempted for pullback gain. For safe traders it is suggested to try long trade if it moves above 17143 and maintain for some time with a stop loss of 17080 and avoid buy on decline for the day, but aggressive traders can try long trade if it holds the range of 17102---17066 with a stop loss of 16950 or can also try long trade on decline  near or within the range of 16890-----16794 with a stop loss of 16740, but mind you long trade on decline and particularly below 16983 could be a risky affair for the day. 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 and short correction mode also therefore short trade can also be tried on the rise near or within the range of 17290---17350 with a stop loss of 17435 or sell if it moves below 16980 with a stop loss of 17090.It is into major correction mode and long term trend is also threatened. The bias is bearish 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.