CNX-NIFTY
Open-17540.65--High—17667.20--Low-17429.70---Close-17622.25
on 19.9.2022.
Support:17639.50/ 17530.85/17490.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 17639.50/17759.30/17777.65/17797/17860/17920/17947.55/17992.70/18096.15/18112.60/18114.65/18217/18342.05/18350.95/18604.45—19329.
(Bold and underlined figures
are most important)
It opened on a flat
to positive note and went down initially but then recovered and finally ended
the day with a gain of 91.40 points.
It is important to mention here that the gap it created on 16.9.2022 is still there and if it makes an effort to fill this gap
in next 2-3 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 is still below its short term moving
averages, below its major down trend line and most importantly way below its
critical points of 18114.65 & 17920
which is a very weak sign and today’s rise was just a pullback up move. Please
note that to get back into the up grove again it has to move above at least the
range of 17677---17810(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 2-3
trading session else down move will continue with in between short relief
rallies. Moving down 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 long term technical
setup looks o.k. as of now but short term setup is slightly dicey, because 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 do not improve fast
and it can only improve if it gives sustained sharp up moves for the next 2-3 trading session in a row, but that
seems less likely at this point of time. So be watchful in the long trade now.
In view of the above observation, it
is still into long term uptrend but into deep short term correction mode now, 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 17770---17830
with a stop loss of 17870 or
sell if it moves below 17530 with a
stop loss of 17630 and then sell
below 17497 with a stop loss of 17550. 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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