CNX-NIFTY
Open-17357.35-High-17625.55-Low-17345.20-Close-17577.50
on 23.8.2022.
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 down gap today and
then recovered and after 2 days of
good fall it bounced back today from its critical support range of 17387.15---17382---17354.05---17329.32
and closed with a gain of gain of 86.80 points.
It is in corrective mode and today’s rise was just a pullback up move which can
exhaust at these points 17592---17668.70---17745---17839---17862
or earlier also and most importantly close below 17490.70 will confirm the end of the pullback up move. Please note
that to resume the strong uptrend again first it has to move above its major
down trend line which is placed at 17780(this
figure will scale down every day) for the day and then move above its critical
resistance points of 17920---17957
on the closing basis then it may be back on the up track again, else down move
will continue 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 is also
below its next key support level of 17625.59
which has 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 sustained break below 17090 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 and move above its critical points 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 for safe traders 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 if it moves above 17626 and maintain for some time with a
stop loss of 17560 or can buy 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.It bounced back from
this range today. But I would suggest avoiding long trade on decline for the
day. 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 17710---17750 but
not above it with a stop loss of 17790 or sell if
it moves below 17490 with a stop loss of 17585. 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 trend 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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