CNX-NIFTY
Open-17748.15--High—17807.65--Low-17691.95--Close-17798.75
on 8.9.2022.
Support: 17797/17794/17777.65/17759.30/17992.70/17794/17639.50/17490.70/17485.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 17860.21/17920/17947.55/17992.70/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened with an
up gap and went up further and finally ended the day with a gain of 174.35 points. Kindly note that the gap
it created today is still there and if it makes an effort to fill this gap in
next 3-4 trading session which is
technically possible then it can come down to 17650. Please note that if it does not fill the gap in the
stipulated time then chances of filling the gap will recede. It bounced back above
all short term moving averages and is well above it now and given upside
breakout from the major down trend line also which is hugely positive. Kindly
note that for continuation of the up move it has to sustain above its major
down trend line on the closing basis which is placed approximately at 17712(figure may change every day) for
the day and if it closes below 17700(figure
may change every day) for the
day then it will be within the down trend line again and that would be a weak
sign. It has crossed the first major hurdle of down trend line today but to get
into 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 17860---17920---17956.50---17992.20---18114.65---18350.95---18604.45.
Similarly moving down it will find good support at 17712---17650---17624---17535 break below 17712 will be an extreme alert point and break below 17650 & 17624 may trigger fall and
finally sustained break below 17535
on the closing basis may accelerate the fall, going down further it has a bed
of strong 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 move may remain intact,
but 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., it
has given a decisive upside breakout from its major down trend line today which
is highly positive sign, but please note that earlier also it had given such
breakout but could not sustain, therefore it has to be seen over next 4-5 trading sessions whether it
sustains this breakout or not and then
continue the up move to cross its important resistance point of 17920 or not , because almost all
important technical indicators except for one are still showing weak sign on
the daily chart despite firm price movement, therefore if these indicators do
not turn positive shortly then weakness in indicators may come into play which can drag it down, but
the positive point here is that as of now the price pattern is o.k. not showing
any sign of breaking down. Therefore it seems that it is moving in a range now
so please wait for few days for a decisive direction, today it has crossed the
first hurdle of major down trend line, so watch out for the next point of 17920 now for the continuation of the
up move.
In view of the above observation long
trade can be tried if it moves above 17808
and maintain for some time with a stop loss of 17680 or buy on decline near 17712
with a stop loss of 17630. However,
aggressive traders can also try 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.
Please note that long trade below 17712
could be a risky bet for the day. Although it is in the long term uptrend but 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 17890---17920 with a stop loss of 17960 or sell if it moves below 17680 with a stop loss of 17740 or sell below 17535 with a stop loss of 17630. The short, medium and long term trend
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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