CNX-NIFTY
Open-17156.30--High—17196.40--Low-16978.30---Close-17016.30
on 26.9.2022.
Support: 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: 17140/17291/17298/17345.20/17354.05/17387.15/17429.70/17484.30/17490.70/17530.85/17639.50/
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 with a
down gap today and went down further and finally ended the day with a loss of 311.05 points. It is important to state
here that the gap it created today is still there and if it makes an effort to
fill the gap in next 3-4 trading
sessions which is technically possible then it can come up to 17292, 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 was into deep corrective mode and today it
slipped into medium term correction mode and whatever up move it may witness
now on would be a pullback move only as of now. It may give a reasonable or
slightly steady pullback rally only if it moves above 17201(figure may change) and sustain on the closing basis else down
move will continue with short relief rallies.
It is decisively below
all its short term moving averages on the daily chart now which are placed in
the range of 17664----17527(this range
will change every day) for 27.9.2022
and below some medium and long term
moving averages also, well below its major down trend line , it is making lower
top & bottom on the line and bar chart both, decisively below its rising
trend line and most importantly it is
decisively below its most important and critical point of 17387.15 & 17354.05 and also below its recent double bottom of 17166--17161 all together these developments are terribly
weak indications and it will surely drag it down further in coming days. It is
important to mention here that its long term moving averages are placed in the
range of 17094—16770(figure will change
every day), it has closed below 17094
which is an alert sign for the long term uptrend and sustained and break below 16770 may put the long term uptrend in
potential danger which may please be noted. Please note that to get into the up
grove again it has to move above its long term moving averages range first i.e.17094 and then move above 17354.05 & 17387.15 and sustain on
the closing basis then there will be some hope for resuming an up move else
down move is likely to continue with intermittent relief rallies. Looking at
last two days free fall chances of sharp up move seems pretty bleak at this
point of time. However moving down it will find good support in the range of 17000---16770 it may bounce back from
this range for a while for a pullback up
move but it is very much likely to break this range eventually as of now
The long term technical
setup is also threatened today so be watchful as it was already into the deep
short term correction mode and today slipped into medium term correction mode,
which is highly concerning. 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 particularly last two days 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 the indicators
as of now suggest that it could hit 16500 levels or may be much lower levels in
coming days/weeks/months. The undertone is highly bearish as of now.
In view of the above observation, from
deep short term correction mode it has slipped into medium term correction mode
today; 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 17235—17292 with
a stop loss of 17390 or sell if it
moves below 16970 with a stop loss
of 17100. Please note that for safe
traders long trade can only be tried once it closes above 17387.15 and sustain else avoid. But aggressive traders can try
long trade if it moves above 17100 and
maintain for some time with a stop loss of 16970
or on decline near or within the range of 17000---16800 with a stop loss of 16740 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 medium
term correction mode now and long term trend is also severely 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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