CNX-NIFTY
Open—17281.75--High—17553.70—Low—17216.10---Close-17503.35 on
23.11.2021.
Support: 17452.90/17326.10/17254.20/17055/16701.85.
Resistance: -17576/17613.15/17688.50/17763/17792.95/17884.60/17947.65/17968.50/18012.20/18041.95/18069.25/18210.15/18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened on hugely negative note and
went down further and thereafter sharply bounced back and after 4 days of fall closed with a gain of 86.80 points.
It is still into deep short term correction
mode and break below 17312.85 will
push it into medium term correction mode, which may please be noted. It is
still below its short term moving averages on the daily and below some averages
on the weekly chart also, almost below all of the medium term moving averages
and also below some of its long term parameters on the daily chart, which is a
very weak indication and if it does not bounce back sharply in next 1-2 days and move above some of the key
points then the fall may continue. Moving down further its other important
support points are at 17326.10---17254.20---16782---16701---16565.60(figure
may change), please note that sustained break below 16782 will put the long term uptrend in potential danger. Similarly
moving up it will face stiff resistance from its critical points at 17613---17792.95---17947.65---17963---18042---18119---18137---18237---18325(figures
may change) and to regain the steady up momentum again it has to move above
this range and sustain, but looking at last few days of down move chances of
crossing this range is very slim at this point of time.
It is important to mention here that
it is way below its correction completion point of 17875 & 18285.80, but its pullback threshold points are at 17451--17482 & 17544 (figure may change)
and it has closed above first two points and if it sustain above these
points then it may give a pullback up move may be of a weak intensity, but if
it moves above 17544 and sustain on
the closing basis then chances are that it may give slightly better and
moderately strong pullback move. But the overall short term technical setup is
very weak as of now mind you.
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 16782(figure
will change every day). It is into deep short term correction mode, 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 deep corrective mode
therefore sell on the rise strategy should be adopted till visible sign
of correction completion emerges. The, short term bias is hugely weak and
negative.
In view of the above, it is into deep
short term correction mode and also below its important pullback threshold
point of 17544, therefore for safe
traders long trade should be avoided and can only be tried if it closes above 17544 and sustain for the pullback
gains. However, aggressive traders can try long trade if it holds the range of 17482---17451 for some time or if it
moves above 17544 and maintain for
some time. 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 still
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 17554 and maintain for some time with a
stop loss of 17500. It is for the aggressive traders and could be a highly risky
trade.
Or
Buy if it holds the range of 17482---17451 for some time with a
stop loss of 17410. It is for the aggressive traders and could be a highly
risky trade.
2. Sell on the rise near or within
the range of 17600---17630 with a stop loss of 17670. It could be a risky trade
but worth trying for intraday gain.
Or
Sell if it moves below 17453
with a stop loss of 17510. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below
17410 and maintain for some time with a stop loss of 17465. It could be a 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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