A TECHNICAL VIEW ON CNX-NIFTY FOR—14.10.2022

 

CNX-NIFTY

 Open-17087.35--High—17112.35--Low-16956.95---Close-17014.35 on 13.10.2022.

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 negative note and tried to recover but could not and gradually slip down and finally ended the day with a loss of 109.25 points. It has again gone below its pullback threshold point of 17024 & 17066(figure may Change) but still within the long term moving average range of 17086—16794(figure will change every day). Please note that this 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. Kindly note that it has to move above its pullback threshold points of 17024 & 17066(figure may Change) and sustain on the closing basis to give some hope of further rise, 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 will persist which may drag it down eventually. Going down from here it may find good support at 16950---16908---16883---16794---16640---16563---16487---16296---15870---15765, similarly moving up it may find stiff resistance at 17024---17066---17086---17168----17196---17268---17333---17354---17387---17408.5.

Its short term technical setup is still looking weak as it is below some of its short , some medium and some long term moving averages on the daily chart and some below weekly chart also, made lower top on the line chart today, furthermore all the four important technical indicators  are  weak on the daily chart, all together these developments are highly 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 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 and into short correction mode also for its recent rise. Therefore for safe trader’s long trade can only be tried once it closes above 17124 avoid buy on decline for the day. But aggressive traders can try long trade if it moves above 17102 and maintain for some time with a stop loss of 17010 or on decline near or within the range of 16890-----16794 with a stop loss of 16730, 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 17160---17210 with a stop loss of 17275 or sell if it moves below 16950 with a stop loss of 17030.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.