CNX-NIFTY
Open-17766.35--High—17838.70--Low-17663.60---Close-17718.35
on 21.9.2022.
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: 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
negative note then recovered to some extent but again slipped down and finally
ended the day with a loss of 97.90
points. But during the day it has filled the yesterday’s gap which please note.
It is still into corrective mode and whatever up move is there is just a
pullback move as of now.
As expected it
could not sustain above its important parameter for a day even and slipped
below almost all of its short term moving averages today and also fallen within
its important range of 17831----17692(this
range will change every day) but just
slightly above its major down trend
line which is placed at 17681(it may
change every day) for the day, all these indicates weakness in it. Please
note that for the continuation of the up move it has to remain above all the
aforesaid parameters 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 else it may drift down. It
is important to mention here that if it moves above 17920 and sustain on the closing basis then chances are that it may
retest its all-time high of 18604.45
or may go beyond it also, but sustained close above 18114.65 may almost ensure that it could make a new high. It is
exhibiting high volatility and every time it moves up it fails to sustain at
the higher levels which clearly shows inherent weakness in it and this
potentially indicates that it is most likely to head downward in coming days
provided it fails to cross its critical points of 17920 &18114.65 in short span of time i.e. in next 3-4 trading session.
The long term technical
setup still looks o.k. as of now but short term setup is slightly dicey, as it
is still in correction mode. Furthermore all the four important technical
indicators are still weak, which is highly concerning and can drag it down.
Please note that if these indicators do not improve fast and it can improve
only if it gives good and sustained up move for the next few day, but looking
at last few days price movement it seems less likely to happen, therefore
further fall from here cannot be ruled out in fact looks inevitable in coming days
provided it do not move above its critical points as mentioned in the above
paragraph.
In view of the above observation, for
safe trader’s long trade can only be tried once it closes above 17920 and sustain else avoid. But
aggressive traders can try long trade if it moves above 17760 and maintain for some time with a stop loss of 17680 or can buy on decline near 17540 with a stop loss of 17470. Please note that long trade for
pullback gains could be a risky affair and long trade below 17680 could be a risky bet for the day,
which may be kept in mind. Although it is in a long term uptrend but still into
short corrective mode, therefore short trade can also be tried after a
reasonable rise or on the price breakdown for intraday corrective gains. Sell
on the rise near or within the range of 17850---17920
with a stop loss of 17970 or
sell if it moves below 17680 and
then below 17485 with a stop loss of
17765 & 17550. The short term trend
is in corrective mode, but medium and 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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