CNX-NIFTY
Open—16562.80--High—16588—Low—16490.95---Close-16520.85
on 20.7.2022.
Support: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:16565/16588/16695/16701.55/16752.40/16793.85/16824.70---833---837/16888.70/16891.70/16894/17006--003.
(Bold and underlined
figures are most important)
It opened with a huge up gap and
closed with a gain of 180.30 points. It decisively crossed its important
point of 16415(figure will change every day) which is a good sign and as
long as it hold this level up move is likely to continue with intermittent down
correction, sustained break below this mark will put the on-going uptrend in
jeopardy. Moving up it will face resistance at 16565---16588---16649—16695---16767---16794---16894---16995---17140---17298---17354.05---17387.15.
It is important to mention here that technically it can fill the gap in
next 3-4 day and if it does makes an effort to fill the gap it can come
down to 16360 levels, furthermore in last 4 trading session it
closed near the high of the day for 3 days but today it closed near the
low of the day, therefore it indicates that it could correct tomorrow, which
may please be noted.
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. Be alert in long trade if it moves below its important point
of 16415 (it changes every day) and sustain on the closing basis. It is
important to note here 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 for safe traders it is suggested to avoid long trade for the day. But
aggressive traders can try long trade if it maintains above 16521 for
some time with a stop loss of 16470 or can try buy on decline near 16415
but not below it with a stop loss of 16350, please note that long trade
below 16470 and below 16415 for sure could be a risky
trade for the day. The up move is on and it is buying on decline market but today’s
price movement suggests that it could correct tomorrow, so be watchful in long
trade. Although it is in short term uptrend 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 16590--16620 with
a short stop loss of 16660 or sell below 16470 with a short stop
loss of 16540 and add position if it breaks and sustain below 16415 with
a stop loss of 16480. 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.
m 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.