CNX-NIFTY
Open—16523.55--High—16626.95—Low—16483.90---Close-16605.25
on 21.7.2022.
Support:16588/16565/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:16627/16695/16701.55/16752.40/16793.85/16824.70---833---837/16888.70/16891.70/16894/17006--003.
(Bold and underlined
figures are most important)
It is exhibiting good strength
and in last 5 days it has vertically moved up by almost 700
points intraday, please note that a vertical rise may have vertical fall,
therefore if it corrects to some extent in a day or two and then resume the up
move then it will be good for the continuation of the up move, else fear of
sharp fall would always be there. Furthermore in next 3 days it could
make an attempt to fill the gap also which it left on 20.7.2022 and if
it does then it could come down to 16360. However as on now the up move
is likely o continue with intermittent down correction as long as it holds 16417(figure
changes every day) on the closing basis. Moving up it will face resistance
at 16649—16695---16767---16794---16894---16995---17140---17298---17354.05---17387.15.
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 16417
(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 is vertically moving up
which is more concerning because 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 16627 for
some time with a stop loss of 16570 or can try buy on decline near 16417
but not below it with a stop loss of 16350, please note that long trade
below 16570 could be a risky trade for the day, so be watchful in the
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 16750--16795 with
a short stop loss of 16830 or sell if it stays below 16570 with a
short stop loss of 16630. The short trade could be a risky bet but worth
trying at this juncture. The short term bias is positive but medium and long
term bias is still negative 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.