CNX-NIFTY
Open—17659.65--High—17724.65—Low—17597.85---Close-17698.20
on 16.8.2022.
Support:17797/17794.60/17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined
figures are most important)
It opened with an up gap and went up
further and finally ended the day near the high of the day with a gain of 127.10
points. But please note that it has been rising for the last 6 days, so
it is vulnerable for correction also, so be watchful. Furthermore the gap it
created today and on 11.8.2022 is still there and if it makes an effort
to fill the gap in next 3-4 and 1-2 trading session for respective
gap which is technically possible then it can come down to 17724 &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
and most importantly it has given upside breakout from its major down trend
line today which is hugely positive sign and it has opened the big upside range
for it. But to sustain the breakout it has to maintain and close above the
range of 17798—17785(range will scale down every day) for the day and
close below 17770(figure will scale down every day) for the day will
push it below the down trend line again. Therefore 17770 is the
benchmark figure for the day and close below this mark may trigger down slide
which please note. It is on a strong technical footing now therefore, it is
likely to continue the up move with intermittent down correction. Moving up
from here its key resistance points would be at 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. It is important to mention here that if it moves above 17920
and sustain on the closing basis then it could retest its all time high of 18604.45
or may go beyond it also which please note. Similarly moving down its key
support points would be at 17797---17508.62(this figure will scale up if it
moves above 17839.10) ---17387.15---17382---17354.05---17298---17212.35---17172.80----17158.25----17100.
Please note that break below 17508.62 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
17212.35 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 17770 for the day. 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 17840 and maintains
for some time with a stop loss of 17760 or can try buy on decline near or within the range of 17798--785 but not below it with a stop loss of 17760. 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 17900---17920 but not above it with a stop
loss of 17960 or sell if it moves below 17760 with a stop loss of
17830. 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.
No comments:
Post a Comment
Thank you for sharing your views.