CNX-NIFTY
Open-17414.95--High--17777.65--Low-17401.50--Close-17759.30
on 30.8.2022.
Support: 17639.50/17490.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
After yesterday’s sharp
fall it rallied in an unprecedented manner today and ended the day near the
high of the day with a whopping gain of 446.40
points, this type of move I have not witnessed in recent years, please note that
one day sharp fall and the very next day robust rise this type of volatility is
concerning and not good for a steady market,. But the fact remains that after
making lower top and bottom recently on the line and bar chart it has crossed
its recent tops on the line and bar chart both but yet to make higher bottom,
it has also bounced back above its all short term moving averages, furthermore
and most importantly it has given breakout from its major down trend line today,
it exhibited extra ordinary strength today and
all these are positive indication, therefore it seems that today’s rally
may have reversed the downtrend, however it has to be watched over the next 2-3 trading session for the
confirmation of the reversal because these types of moves may fizzle out fast also as it had happened in
the past too, therefore confirmation is a must. Please note that to remain in
the up move it has to sustain above its major down trend line which is placed
at 17742(figure may scale down every
day) for the day but a close below 17705(figure
may scale down every day) for the
day will decisively push it below the
trend line ,but to get back into strong up momentum it has to move above 17920 and sustain on the closing basis and
if it does so then it could retest its all time high of 18604.45 or may go beyond it also else it could drift down again.
Moving up it will face stiff resistance at 17797---17827---17920---17956.50---17992.20---18114.65---18350.95---18604.45.
Similarly moving down it will have strong support points at 17625.59---17490.70---17387.15---17354.05---17345.20---17329.32,
i is already in the corrective mode as it is still below its threshold point of
17797, break below 17625.59 will weaken it further and
break below the range of 17387.15---17354.05---17345.20---17329.32
on the closing basis will jeopardize the up move again which may please be
noted.
The technical setup
has improved with today’s sharp up move but it has to be watched over for the next
2-3 trading session whether this up move will sustain or not, because almost
all important technical indicators except for one are still showing distinct weakness
on the daily chart, therefore if these indicators do not turn positive shortly
then weakness in indicators may still come into play and can drag it down.
Please note that the indicators can turn positive only if the sharp up move
continues for few days. It is important to mention here that a vertical rise
may have a vertical fall too and vice a versa as it happened in last two days, so
be watchful.
In view of the above observation, long
trade can be tried if it holds 17742
for some time or if it moves above 17778
and maintain for some time with a stop loss of 17680. Please note that long trade below 17742 could be a risky bet for the day. Although it seems that
downtrend is reversed but confirmation is awaited therefore short trade can
also be tried after reasonable rise or on price breakdown for intraday
corrective gain. Sell on the rise near or within the range of 18050----18110 with a stop loss of 18160 or sell if it moves below 17680 with a stop loss of 17765. Please note that looking at
today’s move sell on the price breakdown would be a relatively safe trade but
aggressive traders can try both. The short term trend has improved but still in
corrective mode, medium and long term trend still looks o.k. as of now. However
in light of today’s move be alert and cautious in next 2-3 trading sessions.
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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