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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.