CNX-NIFTY
Open—16018.85--High—16070.85—Low—15858.20---Close-15938.65
on 14.7.2022.
Support:15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:15962.25/15986.42/15991/16133.57/16162.55/16172.60/16203.25/16275.50/16376.05/16410.20/16472/16490//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)
The correction continued for
the 3rd day today and it closed with a meager loss of 28 points.
But despite that there is not much of a change in its technical setup. It is
still below its critical support range of 16017---15991---15986.42, it
is below its long term correction threshold point of 15986.42 and also in
the short term correction for the recent up rally, which is concerning. Therefore
till it moves above the range of 15986.42---15991---16017 at least and
sustain on the closing basis, chances of up move looks slim. Please note that
one important technical indicator has turned negative but the other three are
still positive, furthermore it has not yet broken its recent bottom on the line
& bar chart as yet, therefore chance of bounce back is still there ,but it
is making lower lows and lower high for the last three days which is a weak
sign. It is therefore suggested to avoid long trade till the sign of
continuation of the up move emerges. Most importantly please note that close
below 15810(this figure may change) as of now will signal the end of the
rally. So watch out.
Since it is in long and short
term correction mode therefore safe traders should avoid long trade till it
closes above 16221 and sustain. However aggressive traders can try long
trade for pullback gains if it moves above 16017 and maintains for some with
a stop loss of 15920 for a target
of 16100---16140 or on decline near 15810 but not below this with
a stop loss of 15740. It is important to mention here that long trade in
a corrective market could be a risky affair therefore one should be extremely
cautious and careful in the long trade at this point of time. Since it is in
corrective mode therefore short trade should be attempted on the rise near or
within the range of 15986.42---15991---16017 with a stop loss of
16060 for a target of 15893---15858---15803, or try short
trade on the price breakdown i.e. sell below 15920 with a stop loss of 16030.
It could be a risky trade but worth
trying for intraday gains in a corrective market. The short term bias is still
up but in corrective mode now, medium and 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.