CNX-NIFTY
Open—15909.15--High—16025.75—Low—15785.45---Close-15810.85
on 5.7.2022.
Support:15776/15735.75/15671.45/15632/15578/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40/15044/14984.15/14883/14745.85.
Resistance:15890/15901/15915/15927/15962/15986.42/15991/16025.80/16162.55/16203.25/16359.25/16399/16410.20/16555.
(Bold and underlined
figures are most important)
The pullback rally was on for
the last few days and it showed good strength on the up move in the first half today
and crossed its critical range of 15986—15991 intraday and hit a high of 16025.75 for the day, but it plunged down in
second half and closed well below this range, which is concerning. Please note
that if it fails to close above this range in next 2 trading session then this
rally may exhaust here and start moving down and break below 15752
on the closing basis will weaken it further and break below 15700 on the
closing basis may confirm the end of the rally and may accelerate the fall. However
in case if it crosses its critical range of 15986—15991 and closes above
it and sustain then this rally may extend. Moving up it will face stiff
resistance at 15986—15991---16050---16100—16179—16203---16285---16320—16414---16460(some
points may change every day). But looking at today’s movement a sharp up
move is very less likely and possibly the on-going pullback rally may have
ended today. So watch out.
In view of the above observation,
safe traders should avoid long trade till it closes above 15991 and
sustain. However the aggressive traders can try long trade if it moves above 15852
and maintain for some time with a stop loss of 15800 or can buy on decline
near 15750 but not below it with a stop loss of 15690. Please
note that it is still in the long term corrective mode and initiating a long
trade for a pullback gains could be a highly risky affair. It is therefore suggested
to be extremely cautious and vigilant in long trade initiated for pullback
gains at this point of time. I would personally avoid long trade now. Since it
is in long term corrective mode short trade should be attempted on the rise at
appropriate points or on the price breakdown for corrective gains. The short
term trend is positive as of now, but the medium and long term trend is still
down.
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.
Contact me for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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Thank you for sharing your views.