CNX-NIFTY
Open-17593.85--High—17642.15--Low-17291.65---Close-17327.35
on 23.9.2022.
Support: 17298/17291/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 17345.20/17354.05/17387.15/17429.70/17484.30/17490.70/17530.85/17639.50/
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
negative note and then as envisaged (see my last few post) plunged down sharply
and finally ended the day with a substantial loss of 302.35 points. It is into deep corrective mode and whatever up move
it may witness would be a pullback move only as of now.
It is decisively below
all its short term moving averages now which are placed in the range of 17754----17659(this range will change every
day) for 26.9.2022 and below some medium term moving averages also, below
its major down trend line which is placed at 17690(it will change every day) for 26.9.2022, it is making lower top & bottom on the line and bar
chart both, decisively broken rising trend line today and most importantly it
has closed below its most important support range of 17408.74---17387.15---17377---17354.05---17345.20 from where it
bounced back few times in the recent past, therefore all together these
developments are terribly weak and indicate further fall ahead, fall may be
arrested if it moves above 17387.15
and sustain on the closing basis else down move is likely to continue. Please
note that to get into the up move grove
again it has to move 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 has already started drifting down and
looking at today’s down move chances of staging a sharp bounce back which could
take it above all the aforesaid parameters seems pretty bleak, therefore
further fall from here looks inevitable with in between short relief rallies.
Going down from here its next important support point is recent double bottom
of 17166--17161 , break below
it may accelerate the fall.
It is important to
mention here that its long term moving averages are placed in the range of 17090—16765(figure will change every day),
break below 17090 will be an alert
point for the long term uptrend and sustained break below 16765 may put the long term uptrend in potential danger which may
please be noted.
The long term technical
setup still looks o.k. as of now but near the striking range to become weak and
it is already in the deep short term correction mode. Furthermore all the four
important technical indicators are distinctly weak, which is highly concerning.
Please note that if these indicators do not improve fast it can drag it down 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 and today’s price destruction
it seems less likely that it could stage a sharp up move shortly, therefore
further fall from here looks inevitable in coming days with intermittent pullback
up move. It is important to mention here
that if price pattern do not improve and remains weak indicators as of now
suggest that it could hit 16500 levels or may be much lower levels in coming
days. The undertone is highly bearish as of now.
In view of the above observation, it
is into deep short term correction mode; so it is already a sell on the rise
market now. Therefore it is suggested to adopt sell on the rise or sell on the
price breakdown strategy till a visible sign of correction completion emerges.
Sell on the rise near or within the range of 17450—17500 with a stop loss of 17550 or sell if it moves below 17290 with a stop loss of 17420
or sell if it remains below 17354 with
a stop loss of 17415. Please note
that for safe traders long trade can only be tried once it closes above 17387.15 and sustain or if it moves
above its short term moving averages range and sustain or if it closes above 17920 and sustain. But aggressive
traders can try long trade if it moves above 17387.15 and maintain for some time with a stop loss of 17320 or near 17166 with a stop loss
of 17080 for pullback gains. Please
note that in general 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 but long trade can be tried at the most critical
points. It is into deep correction mode but medium and long term trend still
looks o.k. as of now but seems threatened. So watch out.
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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