CNX-NIFTY
Open-17796.80--High—17820.05--Low-17497.25---Close-17530.85
on 16.9.2022.
Support: 17490.70/17485.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 17639.50/17759.30/17777.65/17797/17860/17920/17947.55/17992.70/18112.60/18114.65/18217/18342.05/18350.95/18604.45—19329..
(Bold and underlined figures
are most important)
It opened with a
down gap and then steadily moved down and ended the day near the low of the
week with a substantial loss of 346.55 points.
It is important to mention here that the gap it created today is still there
and if it makes an effort to fill this gap in next 3-4 trading session which is technically possible then it could
come up to 17862 level, but if it
does not fill the gap in the stipulated time then chances of filling the gap
will recede for the time being, which please note.
It was already
below its critical point of 18114.65
& 17920 and today it has decisively broken its short term moving
averages and broken its recent bottom of 17624.40
& 17539.45 on the line chart and most importantly closed well below its
major down trend line, all these development together is highly concerning and
the uptrend may be in jeopardy now. Today’s move was devastating and indicate
that further fall is ahead, however to get back into the up grove again it has
to move above at least the range of 17685---17830(this
range will change every day) and sustain on the closing basis and then to
pick up strong up momentum it has to move above its critical points of 17920 &18114.65 and sustain on the
closing basis in the next 3-4
trading session else down move will continue with in between short relief
rallies. Moving down further from here it has bed of strong support in the
range of 17408.74---17387.15---17377---17354.05---17345.20
and then important support at double bottom of 17166--17161 you would recall that it has bounced back from
this range recently couple of times; therefore till it holds this range chances
of regaining the up move may still be alive, but sustained break below this
range on the closing basis may begin a steady down move and break below the
double bottom of 17166—17161 may accelerate the fall, which may please be
noted.
The overall technical
setup has got a big jolt today and it has slipped into moderately deep
correction mode, furthermore all the important technical indicators have turned
weak on the daily chart, which is highly concerning and can surely drag it down
if these indicators does not improve fast and it can only improve if it gives
sustained sharp up moves for the next 3-4
trading session in a row, but that seems less likely to happen looking at today’s
move. So be watchful in the long trade.
In view of the above observation, it
is still into long term uptrend but slipped into deep short term correction
mode therefore please note that it has turned sell on the rise market now; so
it is suggested to avoid long trade till a visible sign of correction
completion emerges. Sell on the rise near or within the range of 17680---17750 with a stop loss of 17800 or sell if it moves below 17490 with a stop loss of 17550 and then sell below 17345 with a stop loss of 17415. But aggressive traders can also
try long trade on decline near or within the range of 17408.74---17387.15---17377---17354.05---17345.20 with a stop loss of
17280 and then near 17160 with a stop loss of 17070 for
pullback gains. Please note that long trade in a corrective market for pullback
gains could a risky affair because pullback rallies are treacherous in nature
and can end abruptly trapping the traders unaware. It is into deep corrective
mode in the short term, so watch out how this correction culminates, but the
medium and the long term trend is still up as of now.
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 favourable 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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