CNX-NIFTY
Open—16010.80--High—16066.95—Low—15927.30---Close-16049.20
on 15.7.2022.
Support: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: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 on-going up rally is still
on and after 3 days down correction it bounced back today and closed
with a gain of 110.55 points. It moved above its critical range of 16017---15991---15986.42
which is a positive sign and as long as it holds this range chances of the
continuation of the up move will be alive.
Furthermore please note that
the present range on the line chart now is between 16221---15938 (this range
can change with the price movement) and if it holds 15938 on
the closing basis and closes above 16221 then the rally may continue,
similarly a close below 16221 and then break below 15938.65 on the
closing basis may signal the end of the rally. On the bar chart the range is
between 16275.50---15858.20(this range can change with the price movement),
breakout above 16275 may continue the up move and break below 15858.20
may signal the end of the rally. Therefore the broad range as of now is between
16275.50---15858.20, close below 15938 will indicate weakness and
break below 15858.20 on the closing basis may end the rally for good and
it will turn sell on the rise market, whereas now it is buy on dip market, which
may please be noted. But since it had good run up one should be extremely
cautious and vigilant in the long trade at this point of time.
The overall short term
technical setup looks o.k.as of now, furthermore some important technical
indicators are positive on the daily chart and most importantly it is making
higher top and bottom on the line and bar chart, so the up move is likely to
continue provided it holds the key points on the downside and give upside break
from the range as mentioned in the above paragraph. Moving up it will face
stiff resistance at 16116---16179---16192---16275.50---16387---16418---16435---16472---16490---16534.
Please note that it will gain meaningful strength if it moves above 16418(this
figure changes every day) and sustain on the closing basis then the rally
can extend further.
In view of the above
observation for safe traders long trade can be tried if it maintains above 16050
with a short stop loss of 15970 but the authentic stop loss would be 15920
and avoid buy on decline for the day. But aggressive traders can also try buy
on decline at appropriate points or near 15938 but not below it with a
stop loss of 15850, it could be a risky trade for the day. Although the
up move is on and it is buy on decline market now 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 16221---16275
with a short stop loss of 16310 or sell below 15920 with a
short stop loss of 15995. The short term bias is positive but medium and
long term bias is still 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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