CNX-NIFTY
Open-17898.65.15-High-17968.45-Low-17852.05-Close-17956.50
on 18.8.2022.
Support:17947.55/17920/17797/17794.60/17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened on a negative note and then
went up and crossed previous day’s high and finally ended the day near the high
of the day with a meager gain of 12.25 points. But please note
that it has been going up for the last 8 days in a row,
therefore it is vulnerable for correction also, so be watchful. Furthermore the
gap it created 16.8.2022 is still there and if it makes an
effort to fill the gap in next 1-2 trading
session which is technically possible then it can come down to 17724
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 to keep the up momentum going it has to stay above its major
down trend line which is placed at 17776--17766(range will scale down every day) for the day, please note that close below
17755(figure will scale down every day) for the day will push
it below the down trend line again and sustain close below the down trend line
may trigger down slide. 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 is likely to retest its all
time high of 18604.45 or may go
beyond it also if it sustains above its most critical point of 17920
on the closing basis, similarly if
it sustains below it on closing basis then be alert in long trade .
Moving down its key support points would be at 17920---17797---17607.44(this
figure will scale up if it moves above 17968.45) ---17387.15---17382---17354.05---17311.18---17298---17172.80----17158.25----17100.
Please note that break below 17607.44 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 17766 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 17970 and maintains for
some time with a stop loss of 17920 or can try buy on decline
near or within the range of 17776--766 but
not below it with a stop loss of 17740. 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 18175 or sell if it moves below 17755 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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