CNX-NIFTY
Open—17183.20--High—17420.35—Low—17149.30---Close-17401.65
on 2.12.2021.
Support:17326.10/17254.20/17216.10/17055/16782.40/16701.85/16565/16376.05/16349.45/16162.55/15962.25---15895.75/15635.95/15632.75/15578.55/15513.45/15450.90.
Resistance: -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 registered
good rise and finally closed with a gain of 234.75 points. The good point of
today’s rise was that is has decisively moved above its pullback important
threshold point of 17185 and also
above medium term correction threshold point of 17312.82, so it is out of medium term correction mode also above
one other critical point of 17270(figure
may change) all these are good signs and if it moves above 17454 and sustain on the closing basis
then it could further move up to 17454---17476---17543---17613---17673---17731---17893—17965---18022---18165---18232
, it may correct at any of these points which may please be noted but if it
moves above 18232 and sustain on the
closing basis then it could retest its all-time high level of 18604.45 or may go beyond it also . Kindly
note that now it’s important range is between 17454---17312.82---17270---17185, if it moves and closes above 17454 and sustain then it could builds
up on gain, similarly break below 17312.82
on the closing basis will push it into medium term correction mode again,
break below 17270 will weaken it
further and sustained break below 17185
will end the pullback rally and down move may resume.
It is important to mention here that
although price pattern has exhibited strength today, so it has to be watched
for at least next 2-3 trading
session whether it hold this price momentum or not, because it is still below
its short and medium term moving averages and also below some of its long term
important parameters on the daily chart, which is still a very weak indication. 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 with in between short relief rallies; therefore it seems that the
fall may continue if the technical indicators don’t improve or the strong price
pattern does not hold. Therefore moving down further its other important
support points are at 17326---17254---17216--17055---16867---16701---16565.60---16376---16028(figure
may change). The long term uptrend is o.k. till it holds 16867(figure
will change every day) sustained break below this mark will put the long
term uptrend in potential danger. The overall short term technical setup is still
weak despite today’s rise; therefore bias is still down as of 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.
In view of the above, it is still
into deep short term correction mode but price pattern has exhibited good
strength today and moved above its immediate important key points now,
therefore long trade can be tried for pullback gains, if it moves above 17421 and maintain for some time or on
decline near or within the range of 17312---17270
and then near 17185 but not
below it. I strongly caution here that long trade in a corrective mode could be
a risky affair; therefore one should be extremely cautious and vigilant in the
long trade at this point of time. It is still
corrective 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 on decline near or within the range of 17312---17270 and then near 17185 but not below it with a
stop loss of 17240 & 17140 respectively. It is for both the traders and
could be a risky trade.
Or
Buy if it moves above 17421 and maintain for some time with a
stop loss of 17390. It is for both the traders and could be a risky trade.
2. Sell on the rise near or
within the range of 17585---17620 with a stop loss of 17660. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it does not move
above 17454 in first one hour of trade with a stop loss of 17510. 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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