CNX-NIFTY
Open—16662.55--High—16706.05—Low—16564.25---Close-16631
on 25.7.2022.
Support: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:16695/16701.95/16752.40/16793.85/16824.70---837/16888.70/16891.70/16894/16995/17006—003/17140/17298/17354.05/17387.15.
(Bold and underlined figures
are most important)
After 6 days of
straight rise finally it corrected today and closed with a loss of 88.45
points. The correction may last one or two days more but in correction if it
does not break 16541 on the closing basis then it will be okay but if it
breaks it then the correction may deepen and break below 16490 may
weaken it further and sustained break below 16420(figure will change every
day) on the closing basis may give indication of the end of the on-going up
rally. Similarly sustained breakout above 16794 may continue the up
rally and if it moves above 16894 and sustain on the closing basis then
the next potential target could be 17298 levels which may please be noted.
The correction was bound to happen and it did happen today but as of now the up
move is likely to resume once the correction is over. Moving up it will face
resistance at 16698---16720---16752.75---16767---16794---16894---16995---17140---16175---17298---17354.05---17387.15.
Similarly moving down key support points are at 16580---16541---16490---16418.
As expected it corrected today
but the overall 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 the long trade if it
moves below its important point of 16541 and then 16490 and
sustain on the closing basis.
In view of the above
observation for safe trader’s long trade can be tried if it moves above 16720
and maintains for some time with a stop loss of 16670 and it is
suggested to avoid buy on decline for the day. But aggressive traders can try
long trade if it moves above 16663 and maintain for some time with a
stop loss of 16610 or can also try buy on decline near 16541 but
not below it with a stop loss of 16480. 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 16775--16800 with a short stop loss of 16860 or sell if
it moves below 16540 with a short stop loss of 16640 or sell near
if it does not move above 16720 even intraday in first one hour of trade
with a stop loss of 16760.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 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.
No comments:
Post a Comment
Thank you for sharing your views.