CNX-NIFTY
Open—17524.40--High—17543.25—Low—17379.60---Close-17516.85
on 9.12.2021.
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 with an up gap but filled
the gap during the day and finally closed with a gain of 47.60 points. But it is still
into deep short term correction mode. It gave both side swings during the day
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
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 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.
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 1-2 trading session. Furthermore it is
way below some of its long term parameters which are in the range of 18084---18442(figure will change every day)
therefore it is still not out of woods and the ongoing up move is just a good pullback rally
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, 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 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, 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 on decline near 17452.90 but not below it with a stop
loss of 17410. 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 at
possible sell points of 17560---17620---17680 with a stop loss of 17580---17640
& 17710 respectively. 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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