CNX-NIFTY
Open—16187.05--High—16359.50—Low—16187.05---Close-16340.55
on 19.7.2022.
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)
The up move continued for the 3rd
day in a row and it closed with a gain of 62.05 points. It is exhibiting
strength therefore it seems that this rally is likely to continue for some more
days. 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 16415(figure will change every day) and
sustain on the closing basis then it will get meaningful strength and sustained
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 it may
end abruptly also, so since it already had a 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 16360 with a
stop loss of 16260 or can buy on decline near 16180 with a short
stop loss of 16140.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 16180
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 16460---16500 with a short stop
loss of 16550 or sell below 16140 with a short stop loss of 16230
or sell if it does not move above 16360 in first hour of trade with
a stop loss of 16390. The short trade could be a risky bet but worth
trying at this point of time. 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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Thank you for sharing your views.