CNX-NIFTY
Open—15977--High—16083.60—Low—15740.85---Close-15782.15
on 13.5.2022.
Support:15735.75/15671.45/15578/15513/15450.90/15431/15336/14984/14883.86/14745/14414.
Resistance: -15914—15962 /15986.42/16162.55/16203.25/16376.05/16410.20/16782.40/16809.61/16815.90/16824.70/16836.80/16891.70/17003.90/17043/17216/17326/17354.05/17387.15/17414.70/17452.90/17559/17600/17613/17639/17704/17795/17948/18018/18152/18210/18350/18604.45.
(Bold and underlined
figures are most important)
The week under review from 9.5.2020—13.5.2022
was very volatile and it had wild movement, but as anticipated eventually it
moved down and closed near the low of the week, breaking its all important
points which is a very bad sign. Furthermore the long term uptrend is in deep
trouble and danger and it may give a ray of hope for moving up only, if it
moves above 16410 and then 16710(figure will change every day)
and sustain on the closing basis, else down move will continue, please note that
chances of crossing these points looks very bleak at this point of time.
Therefore it looks that down move should continue, however moving down it has
good support at 15735---15671.45---15450---14883.86---14745---14414,
it closed near the very 1st support point of 15671.45
therefore chances are that if it hold the range of 15735---15671---15450
it may stage a relief rally but that may not last until it moves above 16710
and sustain. It is important to mention here that sustained break below 15450
will potentially end the long term uptrend, sustained break below 14883.86 will
confirm that it is into the bear market and finally break below 14745 &14414
will accelerate the fall and can drag it down much lower.
It slipped into long term corrective
mode this week and it can come out of it, if it moves above 15987 and
sustain on the closing basis. Furthermore almost all important technical
indicators are weak on the daily & weekly chart, which is highly
concerning. Please also note that indicators are exhibiting weakness on the
monthly chart also and if the down slide continues it will confirm the weakness
this month end which would be devastating. The indicators are tremendously
weakness as of now, therefore further fall looks inevitable and if it fails to
hold the range of 15671---15450 it may drag it down to the range of 15000
to 14600 or below. Please note if it moves above 16364 (this figure will
be scaled down if it breaches 15671.45 mark) levels and sustain then there is a possibility of a
bounce back else down move will continue with in between short relief rallies,
so be alert and careful particularly in the long trade. The long term uptrend is
in deep trouble and short & medium term trend is also deeply down as of
now.
In view of the above
observation safe traders should avoid long trade till correction completion
sign emerges. However, aggressive traders can try long trade near or within the
range 15735--15671 and then near 15450 but not below it with a stop loss
of 15600 and 15375 respectively. Please trail your stop loss in case of
profitable trade to avoid losses. Since it is in long term corrective mode long
trade could be a risky affair, therefore one should be very vigilant and
cautious in the long trade. It is suggested to adopt sell on the rise strategy
at appropriate points or sell on the price breakdown with self defined stop
losses for a possible intraday corrective gain till it gets out of corrective
mode. The bias is hugely bearish as of 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.