CNX-NIFTY
Open—17055.80--High—17160.70—Low—16782.40---Close-17053.95
on 29.11.2021.
Support:16701.85/16565/16376.05/16349.45/16162.55/15962.25---15895.75/15635.95/15632.75/15578.55/15513.45/15450.90.
Resistance: -17055/17216.10/17254.20/17326.10/17436.50/17452.90/17613.15/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/s18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened on a positive note and then
sharply plunged down but finally recovered and closed with a meager gain of 27.50 points.
It is already into medium term correction mode, which is a very weak sign.
Furthermore it is below all its short term moving averages on the daily and the
weekly chart, below its all medium term moving averages on the daily chart and also
below some of its long term important parameters on the daily chart, which is a
very weak indication and if it does not bounce back sharply and move above at
least some of its key points in shortest possible time then the fall may
continue. Please note that looking at last few days’ price movement sharp
bounce back is very less likely to happen in coming days/weeks. Moving down
further its other important support points are at 16833---16701---16565.60---16376(figure
may change), please note that sustained break below 16833(it did break this mark intraday) will put the long term
uptrend in potential danger. Similarly moving up it will face stiff resistance
from its critical points at 17254.20----17326.10---17452.90---17613---17792.95---17947.65---17981---18067---18145---18160---18260---18349(figures
may change) and to regain the steady up momentum again it has to move above
this range and sustain, chances of which is pretty weak at this point of time.
It is important to mention here that
it is way below its correction completion point of 17313---17875 & 18285.80, its pullback threshold points are at 16945---17089--17120 & 17185 (figure
may change) it is above the first point of 16945 now, please note that if it sustain above it then it may
give a lame pullback up move, if it closes above 17089 & 17120 and sustain then it may get feeble strength in
the up move and if it closes above 17185
and sustain then chances are that it may
give slightly better and moderately strong pullback move mind you. Therefore
important and the key pullback threshold point is at 17185 below it any up move would be a very short lived one. The overall
short term technical setup is terribly weak as of now and the potential
direction is down now.
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 uptrend has got a jolt today as it breached its long term trend
upholding point of 16833(figure will change every day) intraday but bounced back to close fairly above it
,however breaking it intraday is concerning and a weak indication. Furthermore it
is into medium term correction mode and below all its critical support points also
as mentioned above, which is all the more bad sign. Furthermore, please note
that few important technical indicators are also weak on the daily and weekly
chart which indicates that it could seek much lower levels in coming days/weeks (it has already been making new low for
the last couple of days) with in between short relief rallies; therefore it
seems that the fall may continue if the technical indicators or the price
pattern does not improve fast. Since it is in medium term 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 medium
term correction mode now and also below its important pullback threshold point
of 17185 therefore for safe traders
long trade should be avoided and can only be tried if it closes above 17185 and sustain for the pullback
gains. However, aggressive traders can try long trade if it holds 17026.45 or if it moves above 17060 and
maintain for some time, else avoid. 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 therefore suggested to
avoid long trade now. It is still in the
long term uptrend but got a warning signal and also into medium term correction
mode, therefore short trade can be attempted on the rise at
appropriate point or can be tried on the price breakdown for taking advantage
of the down move 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 17026.45 levels but not below it for some
time with a stop loss of 16980. It is for the aggressive traders and could be a
highly risky trade.
Or
Buy if it moves above 17060 and maintain for some time with a
stop loss of 17010. It is for the aggressive traders and could be a highly
risky trade.
2. Sell on the rise near or
within the range of 17185---17200 with a stop loss of 17240. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 16980
with a stop loss of 17060. 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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