CNX-NIFTY
Open—16475.35--High—16653.45—Low—16438.75---Close-16641.80
on 27.7.2022.
Support:16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
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)
It strongly bounced back today
after 2 days of down correction and closed with a gain of 157.95
points. It also moved above its important support points of 16541 & 16490
and did not violated its last support point of 16417(figure will change
every day) in 2 days correction which is a good sign, so as long as
it holds the above points chances of resuming up move is there. However
it is well below its recent top of 16719.45 & 16752.25 on the line
& bar chart respectively, therefore to confirm the resumption of up move it
has to close above 16719.45 and then move above 16752.25 but the
authentic breakout point would be 16793.85 and sustained move above this
will help it to get good up momentum. Moving up it will face resistance at 16698---16720---16752.25---16767---16794---16894---16995---17140---16175---17298---17354.05---17387.15.
Similarly moving down key support points are at 16541---16490---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 it is also making higher top & bottom on the line and the
bar chart, so till it holds it recent bottom of 16483.85 & 16438.75
on the line & bar chart respectively 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.
In view of the above
observation for safe trader’s long trade can be tried if it moves above 16663
and maintains for some time with a stop loss of 16600, it is suggested
to avoid buy on decline for the day. But aggressive traders can also try long
trade on decline near 16483 but not below it with a stop loss of 16410.
Although it is in the uptrend 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---16800 with a stop loss of 16860 or sell if it moves
below 16483 with a short stop loss of 16550.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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