CNX-NIFTY
Open—17315.25--High—17484.60—Low—17308.95---Close-17469.75
on 8.12.2021.
Support: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: -17489.80/17600.60/17613.15/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/s18342.05/18604.50.
(Bold and underlined
figures are most important)
It opened with an up gap and went up
further and exhibited good strength and sustained at the upper level and
finally closed with a decent gain of 293.05 points. It has been holding on to gains
for the last two days which is a positive sign. It has moved out of the medium
term correction mode and moved above its
important pullback threshold point of 17212.40
and other key points of 17312.82--17323---17344.70
& 17452.90(figures may change) and if it moves above 17489.80 & 17613 levels and sustain
on the closing basis then it may possibly pick up good up momentum. Similarly
break below 17452.90 would be an
alert sign and break below 17344.70---17323---17312.82
will push it into very short term correction mode for the recent rice and into
medium term correction mode also. 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 17489.80---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 today it has moved 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 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 18066---18432(figure will
change every day) therefore it is still not out of woods and the last two
days up move was just a good pullback rally.
But please note that few important technical
indicators which were weak on the daily and weekly chart for a reasonable time
period, but with today’s rise some indicators are giving positive indication on
the daily chart, therefore if it continues with the strong price pattern 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. 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 for some time or if it moves above 17490 and maintain for some time. However, aggressive traders can
also try long trade on decline near 17344
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 17490 and maintain for some time with a
stop loss of 17440. It is for both the traders.
Or
Buy if it holds 17452.90 for some time with a stop loss of 17410.
It is for both the traders and could be a risky trade.
Or
Buy on decline near 17344 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 17580 & 17650 with a stop loss of 17610 &17695
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 17500. 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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