CNX-NIFTY
Open—17044.10--High—17251.65—Low—16987.75---Close-17176.70
on 7.12.2021.
Support: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: -17216.10/17254.20/17326.10/17436.50/17452.90/17613.15/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened on a hugely positive note
and went up further high and finally closed with a decent gain of 264.45 points.
Since 16900—800 was a strong support
range so it bounced back but today’s rise was a pullback rally only and nothing
else at this point of time. It is still into medium term correction mode and
below its most important and immediate critical points of 17600.60---17454---17323---17312.82 & 17212.40(figure can change),
but above two important point of 17166.70
& 17032.85(figure can change) which is not that great but slightly
comforting. Kindly note that if it slips below 17166.70 and sustain then it may weaken again and break below 17032.85 will end the pullback rally hope
for now. Please note that 17212.40 is
the key pullback threshold point and if it moves above it and sustain on the
closing basis then only there is a chance that it could give moderate to
reasonable pullback up move, else down move may continue with in between short
relief rallies. Please note that it may gather some strength if it moves above 17454 and sustain on the closing basis
and may pick up good momentum if it moves above 17600.60 and sustain on the closing basis, chances of happening
this looks weak at this point of time. Therefore
moving down further its other important support points are at 17166.70---17032.85---16900---16701---16565.60---16376---16058(figure
may change). The long term uptrend is still o.k. till it holds 16900(figure
will change every day) sustained break below this mark will put the long
term uptrend in jeopardy. It is important to mention here that it has a very
strong support in the range of 16900---16800,
so till it breaks this range and sustain on the closing basis it may bounce
back from this range(it did bounced back
from here today) but sustained break below this range may take it down
sharply. The overall short term technical setup is weak; therefore bias is down
as of now.
Kindly note that moving up it will face stiff
resistance at 17190.75---17212.40---17261.33---17312.82---17323---17348.60---17370.18--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 17454 and sustain on the
closing basis then it could possibly builds up some gain for the pullback
rally.
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. Furthermore 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 it fails to exhibit
sustained strong price pattern. The undertone as of now is weak.
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 into medium
term correction mode now, therefore for safe traders long trade should only be
tried if it closes either above 17212.40
or 17454 and sustain else avoid. However, aggressive traders can try long trade
if it moves above 17212.40 and
maintain for some time or if it holds 17166.70
for some time and finally on decline in the range of 16900—16800 but not below it just for pullback gains. 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 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 17212.40 and maintain for some time
with a stop loss of 17160 or try long trade if it holds 17166.70 for some time
with a stop loss of 17130. It is for the aggressive traders and could be a
risky trade.
Or
Buy on decline near or within the range of 16900---16800 but not below it with a stop loss of 16740. It
is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise at
possible sell points of 17262---17350---17370 with a stop loss of 17290 &
17410 respectively. It could be a risky trade but worth trying for intraday
gain.
Or
Sell if it moves below 17166
and maintain for some time with a stop loss of 17220. 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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