Tuesday, 12 July 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—13.7.2022

 

CNX-NIFTY

 Open—16126.20--High—16158.75—Low—16031.15---Close-16058.30 on 12.7.2022.

Support: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:16133.57/16162.55/16172.60/16203.25/16275.50/16376.05/16410.20/16472/16490//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)

It sharply corrected today and closed with a loss of 157.70 points. It slipped into very short corrective mode today as it is below its threshold point of 16095.89 and break below the range of 16017---15991---15986.42 will weaken it further and close below 15810(as of now, this figure may change) may signal the end of this rally.  But it is still positive on the daily chart on all important parameters as of now, so up move may continue once this correction ends and provided it hold its key points. 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 and I have always alert you about it from time to time, so although up move is still on and short term bias is up now, but one should be extremely alert and vigilant in the long trade at this juncture.

 However moving up it will face stiff resistance at 16095.89---16173---16276---16376---16414---16435---16472---16490---16662---16793.55---16894 and this rally may end at any of these points or earlier also, but if it moves above 16435(this figure change may every day) and sustain on the closing basis then, it may show meaningful strength and the rally can extend further. I once again reiterate that as it broke 16095.89 on the closing basis therefore it slipped into very short corrective mode today and sustained break below the range of 16017---15991---15986.42 on the closing basis may weaken it further and finally if it closes below 15810 then it may signal the end of the rally and down move may start. So be watchful.

In view of the above observation, long trade can be tried if it moves above 16221 and maintains for some with a stop loss of 16130 or on decline  near  or within the range of 16017---15991---15986.42 but not below this range with a stop loss of 15940. Today’s corrective move could be a signal of the end of the rally if it does not bounce back above its key points. Therefore,  it is suggested to be extremely cautious and watchful in the long trade at this point of time. Short trade can also be attempted on the rise near or within the range of 16160---16220 with a stop loss of 16290 or on the price breakdown i.e. sell below 15940 with a stop loss of 16030 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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