CNX-NIFTY
Open—17890.55--High—17945.60—Low—17688.50---Close-17764.80
on 18.11.2021.
Support:17763/17688.50/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.
Resistance: -17792.95/17884.60/17947.65/17968.50/18012.20/18041.95/18069.25/18210.15/18342.05/18604.50/18778/19549/19575/19639/20390.09/20656.
(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 133.85 points. It is into deep short term correction mode, it
is below its short and some of the medium term moving averages also, which is weak
sign and could drag it down further. Furthermore it is still way below its
correction completion point of 18332.70 and also below all its critical points of
18315---18228---18132---18119---18045---17971(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 of18119---18045---17971 the on-going uptrend will be in jeopardy and
it will regain up momentum only if it moves above the upper band of the range
i.e. above 18315
and sustain on the closing basis. Moving down further its other important
support points are at 17613---17452---17326.10---17254.20---16770---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, furthermore it is also below its pullback
threshold point of 17847.10 (figure may
change) which is a very weak indication
and if it fails to bounce back above
it and sustain on the closing basis then fall may continue with in between
short up move. However moving up from here its critical resistance points could
be at 17792.95---17884.60---17947.65---17968.50---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 o.k. for the
uptrend to continue as long as it holds 16770(figure
will change every day). It is into deep 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 on the daily and weekly chart 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 technical indicators or the price pattern does not improve
fast. Since it is in corrective mode therefore sell on the rise strategy should
be adopted till visible sign of correction completion emerges. The short
term bias looks weak and negative.
In view of the above, it is into deep
short term correction mode and also below pullback threshold point of 17847.10; therefore for safe traders
long trade can only be tried if it closes above 17847.10 and sustain. However, aggressive traders can try long
trade if it moves above 17784 and
maintain for some time or buy on decline
near 17613 but not below it. Please
note that long trade below the range of 18119---18045---17971(figure will change every day) could
be a highly risky proposition. I strongly
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 17784 and maintain for some time with a
stop loss of 17750. It is for the aggressive traders and could be a highly risky
trade.
Or
Buy on decline 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 17900---17930 with a stop loss of 17960. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17688
with a stop loss of 17770. 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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