CNX-NIFTY
Open-17682.90.15-High-17690.05-Low-17467.35-Close-17490.70
on 22.8.2022.
Support: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:17639.50/17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened with a small down gap today
after key upward reversal on 19.8.2022
and went down sharply and finally ended the day with a loss of 267.75 points. Please note that if
it fails to bounce back above its major down trend line which is placed at 17800(this figure will scale down every
day) for the day and then move above its critical resistance points of 17920---17957 in a shortest possible
time on the closing basis then it may be construed that the uptrend may be over
for good for some time and it may drift down with intermittent relief rallies.
Moving down its key support points would be at 17387.15---17382---17354.05---17329.32---17298---17172.80----17158.25----17100.
Please note that it already into very short correction mode as it is below its
threshold point of 17796, it also
went down below its next key support level of 17625.59 today which
will weaken it further, sustained break below the range of 17388.15---17387.15---17382--17354.05---17329.32 on the closing basis may jeopardize
the on-going uptrend and finally break below 17095 may accelerate the fall.
The overall technical setup is still
o.k. despite last two days fall, because it is still making, higher top &
bottom on the line and the bar chart which is a positive sign. But almost all
except for one important technical indicators are showing distinct weakness on
the daily chart, furthermore it has also gone below some of its short term
moving averages which is also concerning, therefore if it does not bounce back sharply
in shortest possible time then the fall looks inevitable and it may go down
sharply with in between short pullbacks. Therefore it is suggested to avoid
long trade till it moves above the down trend line and its recent top of 17956.50(on the line chart) on the
closing basis and then hold its critical point of 17920 on the closing basis. Please note that after the key upward
reversal on 19.8.2022 the on-going
uptrend is in potential danger, therefore buy on dip strategy should be put on
hold till clarity on the continuation of the uptrend emerges.
In view of the above observation for
safe traders long trade can only be tried once it closes above 17957 and then hold 17920 avoid buy on decline for the day.
However highly aggressive traders can try long trade on decline at appropriate
points or near or within the range of 17387.15---17382---17354.05---17329.32
but not below it with a stop
loss of 17280. Although it is in the
uptrend but into corrective mode now therefore short trade can also be
attempted after a reasonable rise or on the price breakdown for corrective
gains. Sell on the rise near or within the range of 17650---17710 but
not above it with a stop loss of 17765 or sell if
it moves below 17465 with a stop loss of 17565. Please
note that long trade could be a risky affair for the day as it is in a
corrective mode but short trade may not be that risky bet now therefore worth
trying at this juncture. The short term is in corrective mode, medium and long
term trend is still positive as of now, but since it is into corrective mode
therefore it has to be seen how correction culminates.
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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