CNX-NIFTY
Open-17110.90--High—17176.45--Low-16942.35---Close-17007.40
on 27.9.2022.
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 on a
positive note and gave both side movement and finally ended the day with a meager
loss of 8.90 points. It is important
to state here that the gap it created on 26.9.2022
is still there and if it makes an effort to fill the gap in next 2-3 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 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 17173(figure may change) and sustain on the closing basis else down
move will continue with short relief rallies.
It is looking very
weak on the technical chart as it is well below all important technical
parameters as it is below all its short term moving averages on the daily chart
and some below weekly chart now and below
some medium and long term moving averages also, it is 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 all together
these are terribly weak indications which
can 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—16774(figure will change every day),
it is well below 17094 now which is
an alert sign for the long term uptrend and sustained and break below 16774 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. above 17094 and then move above 17354.05 & 17387.15 and sustain on
the closing basis then there will be some hope for resuming the up move else
down move is likely to continue with intermittent relief rallies. Looking at
last few days’ price movement’s 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 this
is what technical indicators suggest as of now.
The long term technical
setup is also threatened so be watchful, it is into medium 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 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 moves.
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, it
is into medium 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 17235—17292
with a stop loss of 17390 or
sell near 17154 with a stop loss of 17200 sell if it moves below 16940
with a stop loss of 17020. 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 17157 and maintain for some time with a stop loss of 17080 or on decline near or within the
range of 17000---16770 with a stop
loss of 16730 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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