CNX-NIFTY
Open—16632.90--High—16636.10—Low—16463.30---Close-16483.85
on 26.7.2022.
Support: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:16490/16541/16565/16588/16627/16695/16701.95/16752.40/16793.85/16824.70---837/16888.70/16891.70/16894/16995/17006—003/17140/17298/17354.05/17387.15.
(Bold and underlined figures
are most important)
The correction continued for
the 2nd day and it closed with a loss of 147.15 points.
Please note that it closed below its important support points of 16541
& 16490 so it has slipped into very short correction mode which is concerning
and finally if it moves below 16417(figure will change every day) and
sustain on the closing basis that may give indication of the end of the
on-going up rally and break below 16382 may deepen the correction,
therefore to keep the uptrend hope alive it has to stay above 16417 level
else rally may end and down move will begin. Moving down its last most
important and critical support range would be 15991---15986.42 and
sustained break below this range may accelerate the fall and it may seek much
lower levels then. Similarly to resume the up move it has to sustain above the
range of 16541---16490---16417 and then a sustained breakout above 16794
may give it a strong up momentum. Moving up it will face resistance at 16490---16541---16698---16720---16752.75---16767---16794---16894---16995---17140---16175---17298---17354.05---17387.15.
Similarly moving down key support points are at 16417---16382---15991---15986.42.
The overall technical setup looks
good as of now, furthermore some important technical indicators are positive on
the daily chart and despite the correction for the last 2days it has not
violated any bottom on the line and the bar chart so far, so till it holds it
recent bottom and other key points on the downside as mentioned in the above
paragraph the up move is likely to continue with in between down correction.
Since it is in correction mode therefore be alert in the long trade if it moves
below its important point of 16417 and then 16382 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 16541
and maintains for some time with a stop loss of 16470 and it is
suggested to avoid buy on decline for the day. But aggressive traders can also try
long trade on decline near 16417 but not below it with a stop loss of 16370.
Although it is in the uptrend but in
correction mode now therefore 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 16570--16620 with a short stop
loss of 16670 or sell if it moves below 16417 with a short stop
loss of 16495.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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