CNX-NIFTY
Open—17967.45--High—17971.35—Low—17798.20---Close-17873.60
on 11.11.2021.
Support:17792.95/17763/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.
Resistance: -17884.60/17947.65/17968.50/18012.20/18041.95/18342.05/18604.50/18778/19549/19575/19639/20390.09/20656.
(Bold and underlined
figures are most important)
It opened on a negative note and slipped
down sharply and hit an intraday low of 17798.20
and then recovered but finally closed with a loss of 143.60 points. It is still into
short term correction mode; furthermore it has slipped below its short and some
medium term moving averages also which is a very weak sign and if it does not
bounce back above the averages in a shortest possible time then
it may move down further from here with an accelerated pace. It is below
its first 5 top point of its
critical support range of18216---18134---18035---17996---17934---17860---17852----17793---17613.10---17452(figures
will change every day) which is concerning, on moving down it may take
support at any of the remaining points and may bounce back also but sustained break
below the 17852 will put the on-going
uptrend in jeopardy and sustained break below 17452 may witness an accelerated fall. Please note that it will
regain the steady up momentum only if it closes above the aforesaid critical
resistance range (which seems less likely to happen at this point of time). Moving
down further its other important support points are at 17326.10---17254.20---16701---16669---16565.60(figure
may change), please note that sustained break below 16669 will put the long term uptrend in potential danger.
It is important to mention here that it could
come out of corrective mode if it closes above 18332.70 and sustain, but since it is above its pullback threshold
point of 17847.10 (figure may change) therefore
chances are that it may continue the pullback move(it did break this mark intraday but managed to close above it, thereby
indicating inherent weakness) and may make an effort to come out of the
corrective mode also but since it closed below its short and some medium term
moving averages and if it does not bounce back above it fast then chances of
pullback move will fade out and break below 17847.10 may resume the down move again with an accelerated pace. However
moving up from here its critical resistance points could be at 17947.65---17968.50---18078.55---18109---18226---18286----18302.75---18332.70---18370---18407---18454---18478---18512---18525---18550---18605(figures
may change) and it could react from any of these points and then may move
up again or may break down also which may please be noted.
It is
important to mention here that pullback rallies are treacherous in nature and
can end abruptly, it is therefore suggested that one should be extremely alert
and cautious in the long trade initiated for pullback gains.
It is important to mention here that its
long term technical setup is still looks good for the
uptrend to continue as long as it holds 16669(figure
will change every day). It is into short term correction mode but the
pullback mode is still on, but it is still below its few critical resistance
points also as mentioned above therefore further fall cannot be ruled out if it
remains below it. Furthermore please note that few technical indicator are giving
weak indication which is also concerning and may accelerate the fall in coming
days, so be alert in long trades. Since it is in corrective mode therefore sell
on the rise strategy should be adopted till visible sign of correction
completion emerges.
In view of the above, it is into
short term correction mode but above pullback threshold point of 17847.10 which is a slightly positive
indication, therefore for safe traders long trade can be tried if it holds 17847.10 for some time else avoid.
However, aggressive traders can also try long trade on decline at appropriate
points or near 17613 but not below
it. I caution here that long trade in a corrective mode could be a highly risky
affair; therefore one should be extremely cautious in the long trade at this
point of time. It is in the long term
uptrend but now in correction mode, therefore short
trade can be attempted on the rise and at appropriate point or can be tried on
the price breakdown for taking advantage of the intraday gains.
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.
TRADING STRATEGY (Suggested)
1. Buy if it holds 17847.10 for some time with a stop loss of 17790.
It is for both the traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 17613 but not below
it with a stop loss of 17580 . It is for
the aggressive traders and could be a highly risky trade.
2. Sell on the rise near or
within the range of 17990---18050 with a stop loss of 18100. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17790
and maintain for some time with a stop loss of 17880. It could be a highly
risky trade but worth trying for intraday gain.
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.
Contact me for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
No comments:
Post a Comment
Thank you for sharing your views.