CNX-NIFTY
Open—17939.35--High—18022.85—Low—17879.25---Close-17898.65
on 17.11.2021.
Support:17884.60/17792.95/17763/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.
Resistance: -17947.65/17968.50/18012.20/18041.95/18069.25/18210.15/18342.05/18604.50/18778/19549/19575/19639/20390.09/20656.
(Bold and underlined
figures are most important)
It opened on a negative note and
moved above yesterday’s close also but could not sustain and started moving
down and finally closed with a loss of 100.55 points. It is still into short term correction mode,
it is below its short and some of the 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 also slipped below all its critical points
of 18301---18214---18120---18105---18036---17962(figures will change
every day) which is highly concerning. Since it has slipped below its
critical support range which is now resistance therefore if it remains below the
range of18105---18036---17962 the on-going uptrend is in jeopardy and it
will regain up momentum only if it moves above the upper band of the range i.e.
above 18301
and sustain on the closing basis. Moving down further its other important
support points are at 17613---17452---17326.10---17254.20---16733---16701---16565.60(figure
may change), please note that sustained break below 17613 may accelerate the fall and sustained break below 16751 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 still continue the pullback move
but the last two days price movement indicate otherwise and signal much weakness
in it and if it moves below 17873 &
17847.10 and sustain then it could witness an accelerated fall, which may
please be noted. 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 16751(figure
will change every day). It is into short term correction mode but the
pullback mode is still on, but it is below its all critical support points also
as mentioned above therefore further fall cannot be ruled out if it remains below
it. Furthermore please note that few important technical indicators are also
weak and indicating that it could seek much lower levels, therefore it seems
that it may have an accelerated fall in coming days/weeks if the indicator does
not improve. 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 term 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 holds 17873
for some time but not below it. However, aggressive traders can also try long
trade on decline at appropriate points or near 17613 but not below it. Please note that long trade below the range
of 18105---18036---17962(figure
will change every day) could be a highly risky proposition. 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 17873 for some time with a stop loss of 17820.
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 17986---18000 with a stop loss of 18050. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17873
with a stop loss of 17950. It could be a highly risky trade but worth trying
for intraday gain.
Or
Sell if it moves below 17847
with a stop loss of 17910. 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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