Commodities

Tuesday, 18 October 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—19.10.2022

 

CNX-NIFTY

 Open-17438.75--High—17527.80--Low-17434.05---Close-17486.95 on 18.10.2022.

Support: 17484.30/17429.70/17387.15/17354.05/17345.20/17298/17291/17140/17006/16995/ 16950/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16747.20/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                                                                                                                                                           

Resistance: 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 an up gap and went up further and finally ended the day with a gain of 175.15 points. Please note that the gap it created today is still there and if it makes an effort to fill this gap in the next 3-4 trading sessions which is technically possible then it can come down to 17328, but if it does not fill the gap in stipulated time then chances of filling the gap will recede.

It has closed above its critical points of 17354---17387 & 17408.75 which is a very positive sign and if it sustains above these points on the closing basis the up move may continue with in between short corrections. It is important to mention here that moving up it will face very stiff resistance from its major down trend line which is placed at 17635(figure will change every day) for the day, for smooth up journey it has to move above it and sustain on the closing basis else it may retreat back also. Moving up from here it may face resistance at 17581---17643---17685---17797---17827---17920---18096.15---18114.65---18350.95---18604.45, please note that if it moves above 17920 and sustain on the closing basis then it could retest its all-time high of 18604.45 or may go beyond it also. Similarly going down it will find support at 17408.75---17387---17354---17345---17298---17229---17161---17137---17045---16983---16950---16931---16903, sustained break below the range of 17408.75---17387---17354   will weaken the up move and it may start to drift down.

 Its short term technical setup has improved , furthermore all the four important technical indicators have turned positive on the daily chart, which is a very good sign. Therefore it seems that the up may continue provided it holds its critical points of 17408.75---17387 & 17354 on the closing basis. The undertone is reasonably good as of now.

In view of the above observation, long trade can be tried if it moves above 17528 and maintain for some time with a stop loss of 17460 or can try buy on decline in the range of 17408.75---17387---17354 but not below it with a stop loss of 17290. Although, it is out of major corrective mode and is in up momentum but short trade can also be tried on the rise or on the price break down for intraday gains. Sell on the rise near or within the range of 17610---17635 with a stop loss of 17675 or sell if it moves below 17290 with a stop loss of 17390. It is still in the long term uptrend.  

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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