CNX--BANK
NIFTY
Open-24114--High-24227.45--Low-24004.80—Close-24053
on
29-9-2017
MajorSupport:-23963.74/23897/23852/23822.20/23708.65/23611.10/23311.85/23029/22996/22978/22578.
MajorResistance:24103/24151—156/24455/24494.35/24496.20/24591.80/24651.05.
For-29-9-17 the intra-day short support
and resistance levels are given here-under:-
Support:-23963.74/23852/23822/23708/23650—611/23580/23341/24216.
Resistance: 24055—78//24103/24151—156/24228/24389/24422--55.
After making major lower top at 25105.35
on 18.9.2017 it started correcting and in 8 trading session it lost close to
1500 points. But on 28.9.2017 after hitting a low of 23611.10 it recovered
sharply to close at 24008.15 which indicates that after the huge impulse fall
of 8 days it has made a short bottom at 23611.10 and may move up further before
it witness further fall. On 29.9.2017 it opened with an up gap and further went
up but late in the afternoon it wiped out all the major gain and closed with a
moderate gain of 44.84 points. The movement for day indicated weakness.
Furthermore it is also below its short and medium term moving averages and other technical indicator such as RSI
and MACD are also badly poised therefore the overall technical setup is weak as
of now and indicate further fall may be ahead in coming days/weeks. But since
it seems that a short bottom at 23611.10 is in place therefore it may move
sideways or up from here for a while before it starts down journey again.
Moving up it will face resistance at 24182/24227/24388/24422—55/24496--535.
The
key points are 23963.74(fix point)/24055 &24227(it changes every
day) so as long as it maintains above 23963.74 then it can be assumed that the
pullback move may continue for a while, move and close above 24055 &24227(it
changes every day) will indicate that the up move may strengthen but it will
regain the strong up momentum only above 24550 which may be please be noted.
The last two days positive close was a pullback move and may continue for some
time if it behaves in the aforesaid manner else it may end anytime soon.
In view of the above observation long
trade for taking advantage of the pullback move can be tried as long as it
holds 23963.74 level but it would be relatively better to initiate long call if
it sustains above 24055 for the day with a stop loss of below 23950 for a
target of 24103—182/24227/24388. Similarly short trade can be attempted below
23950 with a stop loss of above 24055 for a target of 23852/23812/23708 or sell
if it fails to cross 24227 then near it but not above it with a stop loss of
above 24300. Please watch the market for sometime before initiating the
trade.
It is important to mention here that the
ongoing up move after the impulse down move of 8 days just seems to be a
pullback move and may end anytime until and unless it crosses 24502--24550
level and sustain above it; therefore long trade should be handled with extreme
caution and care at this point of time.
Remark:
- It seems that it has made
short bottom at 23611.10,
therefore it
may stage a pullback rally from here before it resumes the down move again, so
those who wish to take advantage of this rally may try long call as suggested
above. But broadly it still seems a sell on the rise market as of now, so be
alert and cautious in long trade.
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.
Note:
Price stated here is of spot market.
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.
Contact me for
strategic guidance to enter and exit the trade.
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Thank you for sharing your views.