CNX-NIFTY
Open—17423.65--High—17474.40—Low—17348.75---Close-17397.50
on 5.8.2022.
Support:17387.15/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17490.70/17639.50/17794.60/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined
figures are most important)
It opened on a positive note
and moved in a range today and finally closed with a meager gain of 15.50
points. Although it closed above its critical points of 17354.05 &17387.15 but not decisively above, so it looks slightly dicey at this point of time.
It is important to mention here that right from the inception of this up rally
from the bottom of 15183, it is for the first time that today’s price movement
indicated some sort of a fatigue but it was not apparent, but to strengthen the
up move from here it has to move above 17490.70 levels and sustain and
hold on to the level of 17387.15 & 17382 on the closing basis while
moving down, else it may correct again and this time correction could be severe
one. Therefore it seems that the next week could be a make or break week for
it. As of now it is on a strong technical footing therefore, it is likely to continue
the up move with intermittent correction which please note. Moving up from here
its key resistance points would be at 17400---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 and then may resume the
up move again. Similarly moving down its key support points would be at 17387.15---17382---17354.05---17298---17242.44(this
figure will scale up if it moves above 17490.70) ----17172.80----17158.25----17120---16894.
Please note that, sustained break below this range 17387.15---17382--17354.05
on the closing basis will make a big dent in the on-going up move and if it do
not bounce back above 17400 again in a shortest time and sustain then
this rally may end for good also which please note, sustained break below 17242.44
will push it into very short correction mode, sustained break below 17120
may weaken it further and finally break below 16946.18 may accelerate
the fall.
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. It seems that it may have completed the correction but today’s price
movement was slightly dicey, so be alert and cautious. In view of the above
paragraph it is suggested to avoid long trade below 17382 for safe traders
but highly aggressive traders can still try long trade near or within its
second and last support range of 17242.44---17172.80---17158.25---17120 ,but it
could prove risky which please note. Last but not least that it is was a buy on
dip market till yesterday but after today’s
dicey price pattern don’t rush to buy on dip instead watch it for a day or two
and then take a buying call.
In view of the above
observation for safe traders long trade can be tried if it moves above 17400
and maintains for some time with a stop loss of 17340 or can try buy on
decline but not below 17382 with a stop loss of 17335. However,
aggressive traders can also try buy on decline near or within the range of 17242.44---17172.80---17158.25---17120
but not below it with a stop loss 17075. Please note that long trade
below 17382 could be a risky bet for the day. 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 17490 with
a stop loss of 17530 or sell if it moves below 17340 with a stop
loss of 17410. 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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