CNX-NIFTY
Open-17188.65-High-17380-Low-17166.20-Close-17312.90
on 29.8.2022.
Support: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:17354.05/17387.15/17490.70/17639.50/17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened with a
huge down gap then recovered to some extent and finally ended the day with a loss
of 246 points. The pullback rally
broke down today and it closed below its critical support range of 17388.15---17387.15---17382--17354.05---17329.32 which is highly concerning, as it closed
below 17329.32 therefore it has
slipped into deep correction mode and if it does not bounce back above the
entire range in next 3-4 trading
session and sustain on the closing basis then the fall may continue with in
between short relief rallies. Moving down its last major and long term support
range would be between 17085---16605(figure
may change every day), it may bounce back near or within the range may be few
times but technical indicators as of now suggest that eventually it is going to
break this range in coming days/weeks. Please note that sustained break below 17085 will weaken it further and
sustained break below 16605 on the
closing basis will may potentially threaten the long term uptrend and the fall
will accelerate which may please be noted. Similarly moving up it will face
stiff resistance at 17354.05---17387.15---17446.35---17481.73---17512.47---17579.20---17594.27---17604.95---17676.67---17797.20---17827,
sustained close above 17387.15
on the closing basis will give a ray of hope that it may move up further and
close above 17604.95 will strengthen
it further else down move will continue.
The technical setup has got a jolt
with today’s fall and the uptrend seems to be in jeopardy now, furthermore after
making, higher top & bottom on the line and the bar chart for a long time
it has made a lower top and lower bottom on the line & bar chart for the
first time which is highly concerning, it is also below its short term moving
averages on the daily chart is also a bad indication. Please note that together
with the above weak parameters the most important factor is that almost all important
technical indicators are showing distinct weakness on the daily chart, therefore
if it does not bounce back sharply in next 3-4
trading session and move above its critical points then the further fall from
here looks inevitable and it may go down sharply with in between short relief
rallies. It seems that it has changed track now and from buy on dip market it
is now sell on the rise market till it signals otherwise which please note.
In view of the above observation,
since it slipped into deep corrective mode therefore long trade should be avoided
now and short trade strategy should be adopted till it gives visible sign of
reversing the trend. Therefore it is suggested to sell on the rise near or
within the range of 17387----17420 with
a stop loss of 17440 or sell near 17380 if it does not move above it in
first hour of trade with a stop loss of 17440
or sell if it remains below 17345.20
or moves below 17280 with a stop
loss of 17395 & 17355. However
highly aggressive traders can try long trade at appropriate point for pullback
gains with self defined stop losses but please note that pullback rallies are
treacherous in nature and can end abruptly also therefore can trap the trader
unaware, so please be cautious in the long trade. The short term trend is in
corrective mode and it is into deep correction now, medium and long term trend
still looks o.k. as of now, but since it is into deep 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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