CNX-NIFTY
Open—16661.25--High—16752.25—Low—16610.90---Close-16719.45
on 22.7.2022.
Support:16701.95/16695/16627/16588/16565/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:16752.40/16793.85/16824.70---837/16888.70/16891.70/16894/16995/17006—003/17140/17298/17354.05/17387.15.
(Bold and underlined figures
are most important)
It is exhibiting good strength
and continued the up move for the 6th day in a row, but its
vertical rise is a concern because a vertical rise may have vertical fall also,
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 with every
rise fear of sharp fall would always be there, because correction is bound to
happen with this kind of straight rise. Please note that in correction it should
not break below 16541(figure may change) and sustain because then the
correction may deepen. Furthermore in next 2 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 of now the up move is
likely to continue with intermittent down correction and if it holds 16490
on the closing basis then the next potential upside target could be 16894
and sustained close above it could take it to 17298 levels which may
please be noted. Similarly sustained break below 16490 will weaken the
rally and sustained break below 16418(figure will change every day) on
the closing basis may end this up rally. Moving up it will face
resistance at 16767---16794---16894---16995---17140---17175---17298---17354.05---17387.15.
Similarly moving down key support points are at 16580---16541---16490---16418.
The overall short term
technical setup looks pretty 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 16490 and then 16418 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 trader’s long trade can be tried if it moves above 16753
and maintains for some time with a short stop loss of 16690 and it is
suggested to avoid buy on decline for the day. But aggressive traders can also try
buy on decline near 16610 but not below it with a stop loss of 16570,
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 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 16850--16900
with a short stop loss of 16930 or sell if it moves below 16540
with a short stop loss of 16620 or sell near if it does not move above 16753
even intraday in first one hour of trade with a stop loss of 16800.The
short trade could be a risky bet but worth trying at this juncture because
vertical rise has made it vulnerable for correction now. The short term bias is
positive but medium and long term bias is still in danger 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.
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