CNX-NIFTY
Open—17079.50--High—17172.80—Low—17018.15---Close-17158.25
on 29.7.2022.
Support:17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17298/17354.05/17387.15/17490.60/17639.50/17794.60/17947.55.
(Bold and underlined
figures are most important)
It opened with an up gap for
the 2nd day in a row and closed with a robust gain of 228.65
points. Please note that these up gap indicates strength but simultaneously
weakness also because if it come down to fill the gap in next 3-4 trading
session which is technically possible then it could be devastating, but if it
does not fill the gap in the stipulated 3-4 days time then chances of
filling the gap will recede but fear will still be there, which may please be
noted. Here if it makes an effort to fill the today’s and yesterdays gap it
created then it could come down to 16948 and then 16654 levels which
please note, nonetheless it is showing good strength and likely to continue the
uptrend with intermittent down correction. Moving up its key resistance points
would be at 17298---17354.05---17387.15----17797---17920---18114.65---18350.95---18604.45
but in between it could face other resistance points too, please note market
could correct from any of these points or earlier and then may resume the up
move again. It is important to mention here that to pick up strong up momentum
it has to move above 17354.05 & 17387.15 and sustain on the closing
basis. Similarly moving down its key support points would be at 16999.86(this
figure will scale up if it moves above 17172.80) ---16894---16793.85---16719.45---16703.30---16483.85---16438.15.
Please note that, break below 16999.86 may push it into short
correction, break below 16894 will weaken it and break below 16703.30
may deepen the correction and finally break below 16483.85 &
16438.75 may jeopardize the on-going uptrend.
The overall technical setup looks
good as of now, furthermore some important technical indicators are positive on
the daily chart and few indicators on the weekly chart also it is also making
higher top & bottom on the line and the bar chart, so till it holds it
recent bottom of 16483.85 & 16438.75 on the line & bar chart
respectively the up move is likely to continue with in between down correction.
It is important to mention here that if it has the desired strength it is not
likely to break 16719.45 levels on the downside on the closing basis,
which please note. It is a buy on dip market for sure as of now till it signals
otherwise.
In view of the above
observation for safe traders long trade can be tried if it moves above 17173
and maintains for some time with a stop loss of 17120 or can buy on decline
near 17020 but not below it with a stop loss 16950. But
aggressive traders can also try buy on decline near 16720 but not below
it with a stop loss of 16670. Please note that long trade below 17020
could be a risky affair for the day. Although it is in the uptrend but short
trade can also be attempted after a reasonable rise or on the price breakdown
for intraday corrective gains. Sell on the rise near or within the range of 17320---17350
with a stop loss of 17400 or sell if it moves below 17150
with a short stop loss of 17200 or sell near if it does not moves above 17173
in first one and half hour of trade even intraday with a stop loss of 17215
. Since it is in uptrend short trade could be a risky bet but worth trying at
this juncture. The short term bias is positive and medium and long term bias has
also started improving but still not out of danger as of now. So be watchful.
MOST IMPORTANT: - Please note that it has
already left 2 up gaps in a row and if it opens with a good upside gap on
1.8.2022 .i.e. well above 17172.80, it is suggested that a sell trade should
surely be tried near or within the targeted range of 17320---17350 with a stop
loss of 17400 because usually out of ten times eight times it corrects sharply on the 3rd
upside gap. Therefore I feel that this trade would be worth trying. Please not
that it is likely to open up with an up gap as per SGX NIFTY reading now. So
watch out.
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.
m for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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