CNX-NIFTY
Open-17619.30-High-17685.85-Low-17519.35-Close-17558.90
on 26.8.2022.
Support:17490.70/17387.15/17382/17354.05/17345/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
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 on a positive note and went
up further but could not sustain at the higher level and drifted down but finally
ended the day with a meager gain of 36.45
points. It is still in corrective mode and the pullback rally is on, so going
up it can possibly exhaust at these points 17668.70---17745---17839---17862
or earlier also, please note that it moved within the range in last 2-3 days but retreated back, therefore
it seems that pullback rally is losing steam, but it is down now and not out of the race for resumption of the uptrend as yet
because most importantly a close below 17522.45
& 17490.70 as of now will
only confirm the end of the pullback rally and then it may start a steady down
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 17522.45---17490.70---17387.15---17382---17354.05---17329.32---17298---17172.80----17158.25----17100.
Please note that it is 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,
break below 17522.45& 17490.70 on the closing basis
will signal the end of the pullback rally, sustained break below the range
of 17388.15---17387.15---17382--17354.05---17345.20---17329.32 on the closing basis may deepen the
fall and jeopardize the medium and long term uptrend and finally sustained
break below 17090 may
accelerate the fall.
The overall technical setup is still
o.k. , but after making, higher top & bottom on the line and the bar chart
for a long time it has made a lower top on the line chart which is concerning, it will signal break down
of the pullback rally once it establish lower bottom by closing below 17522.45 & 17490.70 so watch out. Furthermore
almost all except for one important technical indicators are showing distinct weakness
on the daily chart, it is also below some of its short term moving averages which
is a bad indication, 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 relief rallies. Therefore it
is suggested to avoid long trade till it moves above the down trend line and
then its recent top of 17604.95(on the
line chart) & 17956.50 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 seems to be 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 17605 and maintain for some time with a
stop loss of 17510 or can buy on
decline at appropriate points or near or within the range of 17522.45---17490.70---17387.15---17382---17354.05---17329.32 but not below it with a stop loss of 17290. Please note that long trade
below 17522.45&17490.70 could be
a highly risky bet for the day, therefore I would suggest avoiding long trade
on decline for the day. Although it is in long term uptrend as of now but into
corrective mode 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---17680 but not above it with
a stop loss of 17730 or sell if it moves below 17522 & 17490 with a stop loss of 17615. 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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