Saturday, 9 July 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—11.7.2022

 

CNX-NIFTY

 Open—16273.65--High—16275.50—Low—16157.90---Close-16220 .60 on 8.7.2022.

Support:16203.25/16172.60/16162.55/16133.57/15991//15986.42/15962.25—914---903---895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                                                                                                                                                           

Resistance:16376.05/16410.20/16472/16490//16565/16695/16701.55/16752.40/16793.85/

16824.70---833---837/16888.70/16891.70/16894/17006--003.

 (Bold and underlined figures are most important)

The pullback rally is on and it has decisively crossed its critical range of 15986—15991, which is a positive sign. Please note that it is above its short and some of the medium term moving averages now and some important technical indicators on the daily chart are also positive (but technical indicators are weak on the weekly and monthly chart as of now and it is still below its long term moving averages also, therefore it is very much likely to resume  down move again once the on-going rally ends ), furthermore it is also making higher top & bottom on the line and the bar chart, therefore all together it is showing good strength now and indicate that up move may continue for some more time. It is important to mention here that in all probability it is a pullback rally and you are well aware that these rallies can end abruptly as it happened in the past also, so although up move is indicating strength and short term bias is up now, but one should be extremely alert and vigilant in the long trade at this juncture.

Kindly note that moving up it may face stiff resistance at 16276---16376---16414---16440---16472---16490---16662---16793.55---16894 and this rally may end at any of these points or earlier also, but if it moves above 16440(this figure changes every day) and sustain on the closing basis then, it may show meaningful strength and then the rally can extend further. Similarly moving down break below 16095.89(figure will move up if it crosses it recent high of 16275.50) on the closing basis can push it into very short term corrective mode and sustained break below the range of 16017---15991---15986.42 on the closing basis may end the rally for good and down move will start. But bounce back above this range may resume the up move again, which may please be noted.

In view of the above observation, long trade can be tried if it moves above 16276 and maintains for some with a stop loss of 16170 or on decline  near 16100 and then near or within the range of 16017---15991---15986.42 but not below this range with a stop loss of 16050 & 15940 respectively. It is suggested to be extremely cautious and watchful in long trade at this point of time. Short trade can also be attempted near 16276 if it does not move above it even intraday in first one and half hours of trade with a stop loss of 16340 or on the price breakdown for intraday corrective gains. The short term trend is positive as of now, but the medium and long term trend is still in danger.

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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