Saturday, 2 July 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK-4.7.2022—8.7.2022

 

CNX-NIFTY

 Open—15703.70--High—15793.95—Low—15511.05---Close-15752.05 on 1.7.2022.

Support:15735.75/15671.45/15632/15578/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40/15044/14984.15/14883/14745.85.                                                                                                                                                           

Resistance:15776/15890/15901/15915/15927/15962/15991/16162.55/16203.25/16359.25/16399/16410.20/16555.

 (Bold and underlined figures are most important)

Kindly see my last post for the week from 6.6.2022—10.6.2022 (Nifty closed at 16584.30 on 3.6.2022 ) where I mentioned that the up rally is losing steam and it is expected to correct and it did corrected by 1400 points  on intraday basis and broke its important range of 15735---15671---15450 but staged a bounced back  from its second range of important support points at 15180---15100---15000—14883 and the rally is still on but the price is not showing enough strength  now ,however if it moves above the range of 15986—15991 and sustain then this rally may extend further, but it may gain some strength if it moves above 16475(figure will change every day) which is not likely to happen at this point of time, similarly break below the range of 15700—15650 will be a weak sign and break below 15511 may end the on-going pullback rally, but it is important to mention here that break below the range of 15000—14883 may witness an accelerated fall which may please be noted. Please note that the range of15180---15100---15000—14883 is solid support range therefore the chances are that it may bounce back from this range number of time before breaking it, but eventually it is likely to break this range as per important technical indicators reading as of now so be watchful and extremely cautious in the long trade at least for now

It is into long term correction mode now and the on-going up rally is just a pullback move and it may fizzle out any time soon. This rally is holding on because some important technical indicators on the daily chart are showing positive sign, but it is likely to fade out soon and down move may begin because almost all important technical indicators are showing extremely weak sign on the weekly and monthly chart therefore a good fall looks inevitable in coming week/months provided it breaks its important range of 15180---15000---14883 as mentioned above. The short term trend is slightly positive as of now but the medium and long term trend is still bearish as of now.

In view of the above observation, it is in long term correction mode, therefore it is suggested that the safe traders should avoid long trade now and can only try if it sustain above 15991 on the closing basis. However, aggressive traders can try long trade if it moves above 15781 and maintain for some time with a stop loss of 15660 or on the decline near or within the range of  15511---15450 with a stop loss of 15390. Please trail your stop loss in case of profitable trade to avoid losses. Please note that long trade for playing the pullback move 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 in long term correction mode, therefore 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 corrective gain till it gives visible sign of getting out of corrective mode. The long term bias is 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

suranank@gmail.com

Mobile—8240951127/9831313654.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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