CNX-NIFTY
Open—17463.10--High—17490.70—Low—17161.25---Close-17382
on 4.8.2022.
Support: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:17387.15/17490.60/17639.50/17794.60/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined
figures are most important)
It opened with an up gap and
went up further but could not sustain and plunged down sharply in the midsession
breaking its critical points of 17387.15 & 17354.05 but it
took support at its second and last strong support range of 17242.44---17172.80---17158.25---17140
and bounced back and eventually in last half hour it moved up sharply and
closed above its first critical point of 17354.05 with a meager loss of 6.15
points. It exhibited both side volatility today but finally corrected after 6
days of straight rise but very mildly, volatility is not good for the market,
therefore the correction may last for one or two or few more days but close
above 17389 may indicate that the correction may be over and it may
resume the up move again or it will give visible sign of correction completion
on the downside also. It is on a strong technical footing now therefore, it is
likely to resume the up move once the correction is over which please note. Moving
up from here its key resistance points would be at 17387.15---17490.70---17797---17920---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 as it corrected today
and then may resume the up move again. Please note that to pick up strong up
momentum it has to close above its both the critical points of 17354.05
&17387.15 and sustain else it could be a dicey situation. Similarly
moving down its key support points would be at 17354.05---17298---17242.44(this
figure will scale up if it moves above 17490.70) ----17172.80----17158.25----17130---16894.
Please note that, sustained break below 17354.05 could be a warning
sign, sustained break below 17242.44 may push it into very short correction
mode, sustained break below 17125 may weaken it further and finally
break below 16946.18 may accelerate the fall. It is therefore suggested
to avoid long trade below 17125 and can be tried once it bounce back
above 17244 by the aggressive traders but safe traders should only try
once it closes above 17389.
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 very positive
sign. As expected it corrected very mildly today and closed below its second critical
and important point of 17387.15 but it is holding on to its second and
last support range of 17242.44---17172.80---17158.25---17130 and as
long as it holds this range chance of up move will remain alive but sustained
break below this range could jeopardize the on-going up rally which may please
be noted. Please note that it is a buy on dip market for sure as of now till it
signals otherwise.
In view of the above
observation long trade can be tried if it moves above 17389 and maintains
for some time with a stop loss of 17320 or can try buy on decline near
or within the range of 17242.44---17172.80---17158.25---17125 but not
below it with a stop loss 17080. 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 17650---17710
with a stop loss of 17770 or sell near 17490 if it does not
move above it in first hour of trade with a stop loss of 17550 or sell if
it moves below 17125 with a stop loss of 17244. Since it is in
uptrend short trade could be a risky bet but worth trying at this juncture. The
short term bias is positive and medium and long term bias has also drastically
improved but has to be watched out for few days.
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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