CNX-NIFTY
Open—17619.10--High—17639.50—Low—17355.95---Close-17368.25
on 13.12.2021.
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: -17436.50/17452.90/17489.80/17543.25/17600.60/17613.15/
17639.50/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/18342.05/18604.50.
(Bold and underlined
figures are most important)
As envisaged it gave both side big swing
today but finally closed in the negative territory with a loss of 143.05 points.
It has given a copy book downward reversal today after the recent up move which
is a bad sign and now it is expected to drift down from here; furthermore it is
still into deep short term correction mode. Its immediate critical points are
at 17613---17463.02---17452.90---17437.22---17312.82---17212.40(figures
may change) it did move above all the points intraday today but could not
sustain and at the end closed below its first four points which is highly
concerning. Since it has closed below 17437.22
today therefore it has slipped into very short term correction within the deep
short term correction mode 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 be there but break below this mark
may end the hope of pullback move and an accelerated down move may resume. Today’s
reversal indicates that it may not hold the important pullback threshold point
of 17212.40. Therefore moving down
further its important support points would be 17326---17254---17212.40---17055---16951---16891.70---16860---16782.40---16766(figures
may change). Please note that break below 16951 may put the long term uptrend in jeopardy. However it has
very good support in the range of 16950—16750
(range figure will change every day) and then in the range of 16340--16102(range figure will change every
day) and it may bounce from these range but sustained break below 16102 may put an end to long term
uptrend.
Similarly moving up from here it will
face stiff resistance at 17437.22—17452.90---17463.02---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
today’s reversal chances of moving up seems capped now.
It is still into deep short term
correction mode, but it is still above some of its short term moving averages
on the daily chart, which is a positive sign but it is still below it on the weekly
chart. It is also 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 1-2 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 was just a good pullback rally
which seems has ended today and down move is likely to resume. 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 price 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 improved a bit but got
a jolt today therefore 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 till it holds 16951(figure will
change every day). It is suggested to
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, It is much above its pullback threshold
point of 17212.40 but below its alert point of 17452.90
therefore for safe traders long trade can only be tried if it closes above 17452.90 and sustain else avoid. However, aggressive
traders can try long trade on decline at appropriate points or 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 on decline near 17212 but not below it with a stop loss
of 17170. It is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near 17490---17530
with a stop loss of 17590. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below 17355
with a stop loss of 17420. 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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