CNX-NIFTY
Open—17436.90--High—17703.70—Low—17422.70---Close-17670.45
on 1.4.2022.
Support:17639/17613/17559/17452.90/17387.15/17354.05/17326/17216/17043/17003.90.
Resistance: -17704/17795/17948/18018/18152/18210/18350/18604.45/18862/19402/19725/20390/20417.
(Bold and underlined
figures are most important)
As envisaged in my last post
for 14.3.2022 to 18.3.2022, it propelled the pullback up move and converted it into a strong up rally and it
moved well above its critical points of 17354.05---17387.15---17436.90---17464.75---17559.80,
now as long as it holds these points the up rally will gain strength. But sustained
break below any of these points could be concerning and finally sustained break
below the range of 17224—17000 could end the on-going up move for a
while. Furthermore and most importantly it is in the process of making Inverse
Head & Shoulder Pattern, which is a bullish pattern and if it moves above 17795
and sustain on the closing basis then the pattern will come into play and then
it could hit a maximum up target of 19850—20000, but moving up to the
target range it will face stiff resistance on the way at 17815---17875---17948---18018---18152---18210---18350---18475---18604.45---18862---19402---19725,
please note that the rally may end at any of the above stated points or
earlier also, but if it moves above 18018 and sustain on the closing
basis then it is likely to retest its all-time high of 18604.45 or may
move higher and if it sustains above 18604.45 then it is very much
possible that it could head closer to the maximum target of the inverse head
& shoulder pattern.
It is
showing strength price-wise and the technical indicators has also turned
positive on the daily chart and showing improvement on the weekly chart also,
which indicates that the on-going up move may extend and can last for couple of
days or weeks, off course with intermittent correction and provided it holds
the above mentioned critical points. The technical setup has improved and the
long term and short term bias is positive as of now.
In view
of the above observation long trade can be tried if it moves above 17704 and maintain for some time with a
stop loss of 17600 or on decline at
appropriate support points with self defined stop losses but not below 17400 with a stop loss of 17340. Please trail your stop loss in
case of profitable trade to avoid losses. As it is in the good up move so it is
buy on dip market now, therefore short trade should be avoided in general, but
it can be tried on the reasonable rise at appropriate points or on the price
breakdown with self defined stop losses for a possible intraday corrective
gains. The bias is positive now.
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.
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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Thank you for sharing your views.