CNX-NIFTY
Open—17868.15--High—17965.95—Low—17833.35--Close-17944.25
on 17.8.2022.
Support:17920/17797/17794.60/17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: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 positive note and went
up further and finally ended the day with a gain of 119 points. But
please note that it has been going up for the last 7 days, therefore it
is vulnerable for correction also, so be watchful. Furthermore the gap it
created 16.8.2022 and on 11.8.2022 is still there and if it makes
an effort to fill the gap in next 2-3 and 1 trading session for respective
gap which is technically possible then it can come down to 17724 &17566 levels,
but if it do 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 17800—17785(range will scale down every day) for the day and
close below 17765(figure will scale down every day) for the day will
push it below the down trend line again. Therefore 17765 is the
benchmark point 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 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 it closed above its most
critical point of 17920 today and if it sustains above it on the closing
basis then it could retest its all time high of 18604.45 or may go
beyond it also which please note but break below it on the closing basis could
be an alert sign for long trades. Similarly moving down its key support points
would be at 17920---17797---17605.53(this figure will scale up if it moves
above 17965.95) ---17387.15---17382---17354.05---17309.27---17298---17172.80----17158.25----17100.
Please note that break below 17605.53 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
17298 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 17785 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 17966 and maintains
for some time with a stop loss of 17900 or can try buy on decline near or within the range of 17797--785 but not below it with a stop loss of 17750. 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 18090---18115 but not above it with a stop
loss of 18160 or sell if it moves below 17750 with a stop loss of
17810. 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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