CNX-NIFTY
Open-17322.30--High—17348.55--Low-17169.75---Close-17185.70
on 14.10.2022.
Support: 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: 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 with a
huge up gap but could went up much
further and finally ended the day with a gain of 171.35 points. It is exhibiting volatility which is not good for a
steady up move. Please note that the gap it created today is still there and if
it makes an effort to fill the gap in the next 3-4 trading sessions which is technically possible then it can come
down to 17112, but if it does not
fill the gap in stipulated time then chances of filling the gap will recede.
It moved well above
its pullback threshold point of 17066
and also above its long term moving average range of 17088—16799(figure will change every day), but the way it is showing volatility how long it will
stay above these points it questionable, however as long as it is above these
two parameters chances are that it could build on the up move ,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. 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 17196---17268---17333---17354---17387---17408.75.
Similarly going down from here it may find good support at 17168---17088---17066---17024---16950---16908---16883---16794---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 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 and move above its critical points of 17354---17387 & 17408.75 and
sustain on the closing basis then it may continue to drift down. 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 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 17246 and maintain for some time with a stop loss of 17160 or on decline near or within the
range of 16890-----16799 with a stop
loss of 16740, but mind you long
trade on decline and particularly below 17014
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 17310---17350 with a stop loss of 17420 or sell if it moves below 17169 with a stop loss of 17210
or sell below 16950 with a stop loss of 17070. 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.
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