CNX-NIFTY
Open—17659.65--High—17724.65—Low—17597.85---Close-17698.20
on 12.8.2022.
Support:17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17724.65/17794.60/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined
figures are most important)
It opened on a flat to positive note
and went up further and finally ended the day near the high of the day with a gain
of 39.65 points. Please note that the gap it created on 11.8.2022
is still there and if it makes an effort to fill the gap in next 2-3
trading session which is technically possible then it can come down to 17566
levels, but if it does not fill the gap in stipulated time then chances of
filling the gap will recede. It is exhibiting good strength but it will face
stiff resistance for the day from its major down trend line at 17777—800(figure
will scale down every day), sustained breakout above the down trend line
will open up the big upside range, but if it fails to give upside breakout then
the rally may possibly end and down slide may start. It is therefore suggested
to consider the down trend line range as benchmark range for the long trade at
this point of time. It is on a strong technical footing therefore, it is likely
to continue the up move with intermittent down correction. Moving up from here
its key resistance points would be at 17797---17920---18114.65---18350.95---18604.45
but in between it could face other resistance points too, please note market
could correct from any of these points or earlier also and then may resume the
up move again. Similarly moving down its key support points would be at 17421(this
figure will scale up if it moves above 17724.65) ---17387.15---17382---17354.05---17298---17172.80----17158.25----17120.
Please note that break below 17421 will push it into very short
correction mode, sustained break below the range of 17388.15---17387.15---17382--17354.05
on the closing basis may jeopardize the on-going uptrend, sustained break below
17124.90 may deepen the correction and finally break below 17100
may accelerate the fall.
The overall technical setup looks
good as of now, furthermore some important technical indicators are positive on
the daily chart and few indicators on the weekly chart also it is also making
higher top & bottom on the line and the bar chart which is a very positive
sign. Therefore the up move is likely to continue with in between correction
till it breaks the key levels as mentioned above. In view of the above
paragraph it is suggested to avoid long trade below 17382. Please note
that it is still a buy on dip market as of now till it signals otherwise.
In view of the above
observation long trade can be tried if it moves above 17725 and maintains
for some time with a stop loss of 17670 or can try buy on decline at appropriate points or near 17382 but
not below it with a stop loss of 17340.
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 17777---17800 but not above it
with a stop loss of 17860 or sell if it moves below 17340
with a stop loss of 17425. Since it is in uptrend short trade could be a
risky bet but worth trying at this juncture. The short, medium and long term
trend is positive 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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