CNX-NIFTY
Open-17923.35--High—17925.95--Low-17786--Close-17833.35
on 9.9.2022.
Support: 17797/17794/17777.65/17759.30/17992.70/17794/17639.50/17490.70/17485.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 17860.21/17920/17925.95/17947.55/17992.70/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened with an
up gap today but then steadily moved down and filled the gap during the day and
finally ended the day with a small gain of 34.60
points. But please note that the gap it created on 8.9.2022 is still there and if it makes an effort to fill this gap
in next 2-3 trading session which is
technically possible then it can come down to 17650. Please note that if it does not fill the gap in the stipulated
time then chances of filling the gap will recede for the time being. It is well
above all its short and long term moving averages and above the major down
trend line also which is hugely positive. Kindly note that for continuation of
the up move it has to sustain above its major down trend line on the closing
basis which is placed approximately at 17703(figure
may change every day) for the day and if it closes below 17685(figure may change every day) for
the day then it will be within the down trend line again and that would be a
weak sign. It has already crossed the first major hurdle of down trend line but
to get into strong up momentum it has to move above 17920 and sustain on the closing basis, it did move above it in
intraday today but could not close above it. Please note that if it closes
above 17920 and sustain then it
could retest its all time high of 18604.45
or may go beyond it also else it may drift down again. Moving up its key
resistance points would be at 17860---17920---17956.50---17992.20---18114.65---18350.95---18604.45.
Similarly moving down it will find good support at 17797----17746---17650---17624---17560 break below 17797 & 17746 will push it into
short corrective mode, break below 17703(down
trend line)will be an extreme alert point and break below 17650 & 17624 may trigger fresh fall
and finally sustained break below 17560
on the closing basis may accelerate the fall, going down further it has a bed
of strong support in the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90
you would recall that it has bounced back from this range recently couple of
times; therefore till it holds this range chances of up move may remain intact,
but sustained break below this range on the closing basis may begin a steady
down move which may please be noted.
The technical setup is still o.k., it
is decisively above its major down trend line but earlier also after giving
upside breakout it fell back within it on the 4th day, therefore it has to be seen over next 3-4 trading sessions whether it
sustains this breakout or not and then continue the up move to cross its
important resistance point of 17920 or
not, it did cross it intraday today but could not close. Please note that out
of four important technical indicators except for one all are still showing weak
sign on the daily chart despite firm price movement, therefore if these
indicators do not turn positive shortly then weakness in indicators may come
into play which can drag it down, but the positive point here is that as of now
the price pattern is o.k. not showing any sign of breaking down. Please note
that if price pattern continues to be on the up move for next few more days
then indicators may also turn positive and it is likely to move up further then
else it could be a dicey situation. It is important to cross 17920 levels and sustain on the closing
basis for the continuation and strong momentum of the up move.
In view of the above observation for
safe traders long trade can be tried if it closes above 17920 and sustain or on decline near 17703 with a stop loss of
17640. But aggressive traders
can also try long trade if it moves above 17860
and maintain for some time with a stop loss of 17770 or can buy on decline near or within the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90
with a stop loss of 17280.
Please note that long trade below 17703
could be a risky bet for the day. Although it is in the long term uptrend but short
trade can also be tried after reasonable rise or on price breakdown for
intraday corrective gain. Sell on the rise near or within the range of 17970---17990 with a stop loss of 18050 or sell near 17926 if it does not move above it in first one hour of trade with
a stop loss of 17960 or sell if it moves
below 17640 with a stop loss of 17715 or sell below 17560 with a stop loss of 17630. The short, medium and long term trend
looks o.k. 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 favorable 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.
