Thursday, 28 July 2022

A TECHNICAL VIEW ON CNX-NIFTY FOR—29.7.2022

 

CNX-NIFTY

 Open—16774.85--High—16947.65—Low—16746.25---Close-16929.60 on 28.7.2022.

Support:16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.                                                                                                                             

Resistance:16995/17003/17140/17298/17354.05/17387.15/17490.60/17639.50/17794.60/17947.55.

 (Bold and underlined figures are most important)

It opened up with an up gap and steadily moved up and closed with a good gain of 287.80 points. It decisively closed above its recent top of 16719.45 on the line chart and breakout point of 16793.85 on the bar chart which is a huge positive sign. Furthermore by closing above its critical point of 16894 it has opened up the upside range of 17298, so as long as it holds 16894 chances of hitting 17298 on the upside will be alive, but sustained break below 16894 could drag it down to 16490, which may please be noted, here please note that it has to move above its most important and critical points of 17354.0517387.15 and sustain on the closing basis to pick up strong up momentum. It is important to mention here that  it can make an attempt in next 3-4 trading session which is technically possible to fill the gap it created today and if it does then it could come down to 16654 but if it does not fill it in 3-4 days then the chances of filling the gap will recede. Moving up it will face resistance at 16995---17140---16175---17298---17354.05---17387.15. Similarly moving down key support points are at 16894---16827.55---16690---16531---16490---16417---16382---15991---15986.42. Please note that break below 16827.55(figure can change) could push it into short correction mode.

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. It important to mention here if it has the desired strength it is not likely to break 16719.45 on the closing basis

In view of the above observation long trade can be tried if it moves above 16950 and maintains for some time with a short stop loss of 16870 or can buy on decline near 16827 but not below it with a stop loss 16770. 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 17100---17130 with a  stop loss of 17180 or sell if it moves below 16740 with a short stop loss of 16790.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

suranank@gmail.com

Mobile—8240951127/9831313654.

 

 

 

No comments:

Post a Comment

Thank you for sharing your views.