CNX-NIFTY
Open—15818.50--High—16011.35—Low—15800.90---Close-15989.80
on 6.7.2022.
Support:15986.42/15962/15927/15915/15901/15890/15776/15735.75/15671.45/15632/15578/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40/15044/14984.15/14883/14745.85.
Resistance:15991/16025.80/16162.55/16203.25/16359.25/16399/16410.20/16555.
(Bold and underlined
figures are most important)
It is exhibiting extreme
volatility which is not a good sign, yesterday after big upside move in first
half it plunged down and closed near the low of the day and today it recouped
yesterday losses and closed near the high of the day but closed shade below the
upper band of its critical range of 15986—15991.The pullback rally is on
and if it moves above 15991 and sustain on the closing basis then this
rally may extend. It is important to mention here that some of the important
technical indicators on the daily chart are still showing positive sign(but
looking extremely bad on the weekly and monthly chart), furthermore it is also above
its short term moving averages now and also making higher top & bottom on
the line chart, therefore there is fair chance that this rally may extend
provided it moves above 15991 and sustain on the closing basis, but it
may be short lived. Moving up it will face stiff resistance at 15991---16026---16050---16100—16179—16203---16285---16320—16414---16450(some
points may change every day). It is needless to mention here that pullback
rally are treacherous in nature and may end abruptly, therefore this rally can
exhaust at any of these points or earlier, but if it moves above 16450
and sustain then it could get meaningful strength and rally can extend further.
Similarly close below 15810 will weaken this rally and close below 15752
will confirm the end of this rally, which ay please be noted.
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 16026
and maintain for some time with a stop loss of 15950 or can buy on decline
at appropriate points or near 15750 but not below it with a stop loss of
15690. Please note that after making a bottom at 15183.40 on 17.6.2022
it already rallied by more than 800 points as of now therefore
initiating a long trade for a pullback gains at this juncture could be a highly
risky affair. It is therefore suggested to be extremely cautious and vigilant
in long trade at this point of time. Short trade can also be attempted on the
rise at appropriate points or on the price breakdown for intraday 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.