CNX-NIFTY
Open-9968.80—High-10027.70---Low—9951.90---Close—9998.05
on
23-3-2018
Support: 9955.80/9944.50/9919.44/9792.05/9740.10/9709.30/9685.55.
Resistance: 10033.35/10049.10/10074.50/10094/10124.50/10141.55.
For-26-3-2018
the intra-day important support and resistance levels are given here-under:-
Support: - 9955.80/9951.90/9944.50/9919.44/9792.05/9740.10/9709.30/9685.55
Resistance: 10027.70/10033.35/10049.10/10070/10105.
Further to
my last post of 12.2.2018, as expected it oscillated in the range of
10552.40—10000 till 22-3-2018 but finally as envisaged it broke 10000 level
today. It looks extremely weak on the technical chart and expected to move down
further from here.
It opened with a huge down gap today and did
not fill the gap during the day, so it may try to fill the gap in next 3-4 trading
session, which is technically possible and if it does than it can move up to
10105 otherwise it may not fill it now. But the trend is down for sure and it
is looking terribly weak on the technical chart therefore expected to drift
downward in coming days, however in between short relief rally could be there.
Furthermore it is making lower tops & bottoms consistently, short term
moving averages has given negative crossovers, medium term moving averages are
on the verge of giving negative crossover, broken
long term moving average range which is between 10389---10070(it changes every
day) for 26-3-2018 and a potential threat to the long term uptrend if it does
not bounce back above it in a short span of time and finally there is huge
negative divergence in RSI on the daily and weekly chart which indicates
further downside is still open and it is likely to break 9788 level for sure in
coming days. Moving down it will find good support at 9955.80/9944.50/9919.44/9792.05/9740.10/9709.30/9685.55
and may make a short bottom in the range of 9760—9685 and may stage a pullback
before falling further, but please note that if it sustain below 9685 on the
closing basis then it can move down further in this run and can hit 9532—9448
level.
In view of
the above observation, the trend is clearly down and the long term uptrend is
in potential danger therefore it is suggested to adopt sell on the rise strategy
now with proper stop losses or can sell if it sustain below 9951 for the entire
week starting from 26.3.18 with a stop loss of above 10000. Please note that long trade would only be safe
to attempt if it moves above its long term moving averages upper band (as
mentioned above,it changes every day) and sustain. But aggressive trader can attempt long trade on
decline in the range of 9760—9685 with a stop loss of below 9650 for a possible
pullback rally from this range. I would like to mention here that pullback
rallies are treacherous in nature and can end abruptly also therefore one should be extremely cautious and
careful in long trade for pullback play.
Remark: - The long
term uptrend is threatened as it is well below its all long term moving
averages and if it sustains below if for some time then the down move may
accelerate and it may seek much lower levels in coming days/weeks. It is
therefore suggested to avoid long trade completely till it moves above its long
term moving average upper band and sustain. The downtrend is on therefore it is
suggested to adopt sell on the rise strategy till it gives visible indication
of bottoming out. The bias and technical parameters are hugely bearish
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 is of spot market.
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Thank you for sharing your views.