CNX-NIFTY
Open—18127.05--High—18132.65—Low—17958.80---Close-17999.20
on 16.11.2021.
Support:17968.50/17947.65/17884.60/17792.95/17763/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.
Resistance: -18012.20/18041.95/18069.25/18210.15/18342.05/18604.50/18778/19549/19575/19639/20390.09/20656.
(Bold and underlined
figures are most important)
It opened on flat to positive note and
immediately started slipping down and finally closed with a loss of 110.25
points. It is still into short term correction mode, it slipped below some of its
short and medium term moving averages again, which is weak sign for the
continuation of the up move. Furthermore it is still way below its correction
completion point of 18332.70 and below its first 5 top point of its critical resistance & support range of18281---18198---18100---18085---18019---17943---17860---17793---17613.10---17452(figures
will change every day) which is concerning. Please note that it will regain
the steady up momentum only if it closes above the upper band of the range i.e.
above18281 and sustain. Moving down it may take support at any of the remaining
points and may bounce back also but sustained break below the 17943 will put the on-going uptrend in jeopardy
and sustained break below 17613.10
may witness an accelerated fall. Moving down further its other important
support points are at 17326.10---17254.20---16733---16701---16565.60(figure
may change), please note that sustained break below 16733 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 still above its pullback
threshold point of 17847.10 (figure may
change) therefore chances are that it may continue the pullback move and if
it moves above 18196.30 and sustain
on the closing basis then it may come out of the corrective mode also. It is
important to note here that break below18069.25
(figure will change every day) will be an alert sign and break below 17943 will tremendously weaken it and finally
break below 17847.10 may resume the down
move again with an accelerated pace, which may please be noted. Therefore it is
suggested to avoid long trade 18069.25.
However moving up from here its critical resistance points could be at 18069.25---18112.60---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 16733(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 important technical
indicator are still weak which is also concerning and if does not improve it may
accelerate the fall in coming days. Since it is in corrective mode therefore
sell on the rise strategy should be adopted till visible sign of
correction completion emerges. However aggressive traders can try long trade at
appropriate points for pullback gains but with extreme caution. The short bias
looks weak.
In view of the above, it is into
short term correction mode but well above the pullback threshold point of 17847.10, therefore for safe traders
long trade can be tried if it moves above 18069.25
and maintain for sometime avoid buy on decline for the day. However, aggressive
traders can also try long trade on decline at appropriate points or near 17875 and then 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 moves above 18069.25 and maintain for some time
with a stop loss of 17980. It is for both the traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 17875 and then near
17613 but not below it with a stop loss of 17830 and 17580 respectively. It is
for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near or
within the range of 18090---18115 with a stop loss of 18150. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17958
and maintain for some time with a stop loss of 18015. 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.
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