CNX-NIFTY
Open—17476.05--High—17534.35—Low—17405.25---Close-17511.30
on 10.12.2021.
Support:17489.80/17452.90/17436.50/17326.10/17254.20/17216.10/17055/16782.40/16701.85/16565/16376.05/16349.45/16162.55/15962.25---15895.75/15635.95/15632.75/15578.55/15513.45/15450.90.
Resistance: -17543.25/17600.60/17613.15/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened on a negative note and
finally closed with a meager loss of 5.55 points. It is still into deep short term
correction mode. It gave both side swings during the day as it did yesterday
but managed to hold its critical points of 17452.90---17389.50---17363.70---17312.82---17212.40(figures
may change) and if it moves above 17613
levels and sustain on the closing basis then it may possibly pick up some up
momentum. Similarly break below 17452.90(it
did break this mark intraday yesterday and today also) would be an alert sign
and break below 17389.50 & 17363.50 will
push it into very short term correction within the deep short term correction
which is already on, break below 17312.82
will push it into medium term correction mode. However, as long as it holds
17212.40 chances of up move will
always be there but break below this mark may end the hope of pullback move and
down move may resume. Moving up from here it will face stiff resistance at 17543.25---17562.25---17600&
17613---17665---17694---17746---17873---17908---17925---17974---18030---18174.50---18210.15---18240,
it may correct at any of these points which may please be noted. Looking at last two days price pattern it
seems that it is expected to give a big move on the either side in next 1—2
trading session, so be alert and watch out.
It is still into deep short term
correction mode, but it is above its short term moving averages on the daily
chart, which is a positive sign but it is still below some of it on the weekly
chart. It is still below some of its medium term moving averages on the daily
chart, therefore it has to be seen whether it sustain above its short term
moving averages and move above its medium term moving averages or not in next 2-3 trading session. Furthermore it is
way below some of its long term parameters which are in the range of 18101---18455(figure will change every day)
therefore it is still not out of woods and the ongoing up move is just a good pullback rally
as of now and you are well aware that these rallies can fizzle out abruptly.
But please note that few important technical
indicators which were weak on the daily and weekly chart for some time, but now
some indicators are giving positive indication on the daily chart which is
again a positive sign, therefore if it holds the key levels for the next few
days then chances are that it may pick up good and steady up momentum in coming
days/weeks, else it may resume down move again. The short term trend has
improved a bit but it has to be seen how it pans out in next few days, because
it is still in a corrective mode. The long term uptrend is intact as of now. It is suggested to be alert in long trade
below 17452.90 and avoid long trade
below 17212.40 for sure.
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 now, but since it closed above its pullback
threshold point of 17212.40 and
other key point of 17452.90 therefore
for safe traders long trade can be tried if it holds 17452.90 on decline or if it moves above 17544 and maintain for some time, else avoid. However, aggressive
traders can also try long trade on decline near 17363 and then near 17212.40
but not below it for pullback gains. I strongly caution here that long
trade in a corrective mode for pullback gains 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 in 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 if it moves above 17544 and maintain for some time with a
stop loss of 17475. It is for both the traders and could be a risky trade.
Or
Buy on decline near 17452.90 but not below it with a stop loss
of 17380. It is for both the traders and could be a risky trade.
Or
Buy on decline near 17363 and then near 17212 but not below it with a stop loss of 17300 & 17180 respectively.
It is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near 17620---17640
with a stop loss of 17680. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below 17450
and maintain for some time with a stop loss of 17520. It could be a risky trade
but worth trying for intraday gain.
Or
Sell if it moves below 17360
with a stop loss of 17410. 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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