CNX-NIFTY
Open—16151.40--High—16287.95—Low—16142.20---Close-16278.50
on 18.7.2022.
Support: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: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)
As expected the up move
continued for the 2nd day and it closed with a good gain of 229.30
points. Most importantly today it closed above its critical point of 16221
& 16275.50 on the line and the bar chart respectively which is an
extremely positive sign and indicate that the up is likely to continue. But
break below 16220.60(figure may change with the price movement) on the
closing basis could be an alert sign and break below 15938.65 &15858.20(figure
may change with the price movement) as of now may signal the end of
the rally. Moving up it will face resistance at 16376---16418---16472---16490---16526----16565---16630--16695,
please note that if it moves 16418 and sustain on the closing basis then
it will get meaningful strength and move above 16490 will extend this
rally further.
The overall short term
technical setup looks good 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 as mentioned in the
above paragraph. But kindly note that this rally is a pullback rally and since
it already had good run up one should be extremely cautious and vigilant in the
long trade at this point of time.
In view of the above
observation long trade can be tried if it maintains above 16288 with a
stop loss of 16200 or can buy on decline near 16151 with a short stop
loss of 16090.But aggressive traders can also try buy on decline at
appropriate points with self defined stop loss or near 15938 but not
below it with a stop loss of 15850, please note that long trade below 16151
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 16380---16420 with a short stop
loss of 16470 or sell below 16140 with a short stop loss of 16230
or sell if it does not move above 16288 in first hour of trade with
a stop loss of16330. 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.
No comments:
Post a Comment
Thank you for sharing your views.