CNX-NIFTY
Open—18084.35--High—18112.60—Low—17983.05---Close-18044.30
on 9.11.2021.
Support:18041.95/18012.20/17968.50/17947.65/17884.60/17792.95/17763/17613.15/17576/17452.90/17326.10/17254.20/17055/16701.85.
Resistance: -18342.05/18604.50/18778/19549/19575/19639/20390.09/20656.
(Bold and underlined
figures are most important)
It opened on a flat to positive note
but eventually closed with a loss of 24.30 points. It is still into short term
correction mode, furthermore it is below its first 2 top point of its critical support range of18183---18100---18003---17948---17884---17860---17807----17793---17452(figures
will change every day) which is concerning, on moving down it may take
support at any of the remaining points and may bounce back but sustained break
below the 17807 will put the on-going
uptrend in jeopardy and sustained break below 17452 may witness an accelerated fall. Please note that it will regain the steady up momentum only if it
closes above the aforesaid range i.e. 18183 and sustain. Moving down
further its other important support points are at 17326.10---17254.20---16701---16629---16565.60(figure
may change), please note that sustained break below 16629 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 above its pullback threshold
point of 17847.10 (figure may change) therefore
chances are that it may continue the pullback move and may make an effort to
come out of the corrective mode also but break below 17940 will be an alert sign and break below 17847.10 may resume down move again. However moving up from here
its critical resistance points could be at 18078.55---18109---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 16629(figure
will change every day). It is into short term correction mode but the
pullback mode is 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 technical indicator are giving weak
indication which is also concerning and may accelerate the fall in coming days,
so be alert in long trades. Since it is in corrective mode therefore sell on
the rise strategy should be adopted till visible sign of correction
completion emerges.
In view of the above, it is into
short term correction mode but above pullback threshold point of 17847.10 which is a slightly positive
indication, therefore for safe traders long trade can be tried on decline if it
holds 18012.25 for some time or buy
if it moves above 18088 and maintain
for some time. However, aggressive traders can also try long trade on decline at
appropriate points or near 17847.10 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 on decline if it holds 18012.25 for some time with a stop
loss of 17960. It is for both the traders and could be a risky trade.
Or
Buy if it moves above 18088 and maintain for some time with a
stop loss of 18025. It is for both the traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 17847.10 &
17613 but not below it with a stop loss of 17800 & 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 18180---18200 with a stop loss of 18240. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it does not move
above 18113 in first one and half hour of trade with a stop loss of 18140. It
could be a highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below
17940 and maintain for some time with a stop loss of 18010. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17829
and maintain for some time with a stop loss of 17880. 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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