CNX-NIFTY
Open-17546.45--High—17683.15--Low-17540.35--Close-17665.80
on 5.9.2022.
Support:17639.50/ 17490.70/17485.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17759.30/17777.65/17992.70/17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
After two days of
down move it bounced back today and ended the day with a gain of 126.35 points. It has also bounced back
above its short term moving today, which is a good sign but it has been giving
whip saw around it, therefore it is to be seen how long it stays above it. But it
is still below its major down trend line, which is concerning. Please note that
to get into the steady up move grove it has to move above its major down trend
line which is placed approximately at 17745(figure
may change every day) for the day and sustain above it on the closing basis
and then to catch up the strong up momentum it has to move above 17920 and sustain on the closing basis
and if it does so then it could retest it’s all time high of 18604.45 or may go beyond it also else
it may drift down again. Moving up its key resistance points would be at 17777.05--17797---17827---17920---17956.50---17992.20---18114.65---18350.95---18604.45.
Similarly moving down it will find good support at 17612---17557---17478 and then it has a strong bed of support in
the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90
you would recall that it has bounced back from this range recently couple of
times; therefore till it holds this range chances of up may remain intact,
sustained break below this range on the closing basis may begin a steady down
move which may please be noted.
The technical setup is still o.k.,
but it has to be watched over for the next 2--3
trading session whether it gives upside breakout from the major down trend line
or not and then continue the up move to cross its important resistance point of
17920 , because almost all important
technical indicators except for one are still showing weak sign on the daily chart,
therefore if these indicators do not turn positive shortly then weakness in
indicators may come into play and can drag
it down, but the silver lining here is that as of now the price pattern is not showing
any sign of breaking down as yet. Therefore it seems that it is moving in a
range now so wait for few days for a decisive direction, till then trade the
range.
In view of the above observation long
trade can be tried if it moves above 17684
and maintain for some time with a stop loss of 17595 or can buy on decline near or within the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90
with a stop loss of 17280. Although
it is still in the long term uptrend but still in corrective mode now therefore
short trade can also be tried after reasonable rise or on price breakdown for
intraday corrective gain. Sell on the rise near or within the range of 17760----17780 with a stop loss of 17820 or sell if it moves below 17475 with a stop loss of 17560. It is still in short term
corrective mode, but medium and long term trend still looks o.k. 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 favorable 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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