CNX-NIFTY
Open—16761.65--High—16793.85—Low—16567.90---Close-16584.30
on 3.6.2022.
Support:16438.85/16410.20/16376.05/16363.44/16203.25/16162.55/15962—15903/15775.20/15735.75/15671.45/15635—632/15578—566/15513.45/15450.90/15431.75.
Resistance: -16695.50/16793.85/16809.65---836.80/17003.90/17053.25/17216/17326/17354.05/17387.15/17452.90/17613/17639.
(Bold and underlined
figures are most important)
Kindly see my last post for 16.5.2022—20.5.2022
where I mentioned that if holds the range of 15735---15671---15450 it
may stage a relief rally but that may not last until it moves above 16710
and sustain on the closing basis, it did rallied from there and gave an upside move of 1000
points on the intraday basis in last 15 days , but this week end closing
indicate that the up-move is losing steam and the relief rally may be over if
it does not move above 16650 and then above 16800 and sustain on
the closing basis. It may get into short corrective mode if it moves below the
range of 16544—16522 and sustain, however as long as it holds the mark
of 16363 chances of resuming the up move may be alive. But break below 16363
will drag it down further to 16050---15986.85---15735.75—15671.45---15450
levels, please note that break below 15986.85 will push it into long
term correction mode again and break below 15450 will potentially end
the long term uptrend. Therefore this is an important support range but if it comes
near to this range time and again then it will be a weak indication and then in
all probability it will break the range in coming days, which may please be
noted.
It is still into medium term
correction mode and the up rally was just a pullback move but now it seems that
the on-going up rally is losing steam as it has made lower top on the line
chart now after making higher top & bottom for some time, therefore this
rally may end if it fails to move above 16650 & 16800 and sustain. Furthermore
almost all important technical indicators are weak on the weekly & monthly
chart, which is highly concerning. However the indicators are positive on the
daily chart for some time hence the rally, but now price is indicating
weakness, which is a bad sign. Overall it indicates weakness; therefore further
fall looks very much likely in coming days provided it does not move above the
above mentioned points. The short term trend is slightly positive as of now but
the long term trend is still in danger.
In view of the above observation
as momentum is losing the steam, therefore it is suggested that the safe
traders should avoid long trade now and can only try if it sustains above 16650 on the closing basis. However,
aggressive traders can try long trade if it moves above 16650 and maintain for some time with a stop loss of 16575 or on the decline near 16522 and then near or within the range
of 16438—410—363 with a stop loss of
16590 and 16300 respectively. Please trail your stop loss in case of
profitable trade to avoid losses. Please note that long trade at this juncture
could be a risky affair, therefore one should be very vigilant and cautious in
the long trade at this point of time. Since it is showing sign of weakness 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 gives sign of resuming the up move again. The long
term bias is still negative 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.