CNX-NIFTY
Open-17256.05--High—17261.80--Low-16950.30---Close-16983.55
on 11.10.2022.
Support: 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: 16995/17006/17140/17291/
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 flat
to positive note but gradually slipped down and closed with a loss of 257.45 points. It has gone below its
pullback threshold point of 17024 & 17066
therefore it seems that the pullback rally may be over but a faint
confirmation will come if it closes below 16887
but it is still within its long term moving averages range of 17086—16792(figure will change every day).
Please note that this is a very strong support range it may bounce back from
this range again as it had bounced back earlier also but certain important
technical indicators as of now suggest that eventually it is going to break
this range and if it does so then fall may accelerate. Similarly to get back
into up grove again it has to move above its most important and critical points
of 17354---17387 & 17408.75 and
sustain on the closing basis, which seems less likely to happen at this point
of time. Moving down from here it may find good support at 16908---16883---16791---16640---16563---16487---16296---15870---15765
it may bounce back from any of these points for a very short relief rally
but reasonable pullback rally can only be expected once it closes above 17066 and sustain, similarly moving up
it will find stiff resistance at 17024---17066---17086---17168----17196---17268---17333---17354---17387---17408.5.
Its short term
technical setup is still looking weak as it is below some of its short ,medium and long term moving averages on the daily
chart and some below weekly chart also, furthermore all the four important
technical indicators are still weak on the daily chart, which is concerning.
Please note that if these indicators do not improve fast it can drag it down
further and it can improve only if it gives good and sustained up move. Please
note that if it fails to give sharp up move in a shortest possible time say in
next 2-3 trading sessions and move
above its critical points of 17354---17387
& 17408.75 and sustain on the closing basis then it may continue to drift down and looking at today’s move chances of sharp
up rally is less likely. The undertone is mixed but with a tilt towards
downside as of now.
In view of the
above observation, it is into major correction mode and below its pullback
threshold points of 17024 & 17066 but
it is within its long term moving
average range of 17083—16791(figure will
change every day). So for safe traders it is suggested to try long trade
once it closes above 17086 and
sustain else avoid, but aggressive
traders can try long trade if it moves above 17066 and maintain for some time with a stop loss of 17000 or can buy on decline at
appropriate points with self defined stop loss or near or within the range of 16890-----16792 with a stop loss of 16730. 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 it can be tried at the most critical points. Similarly
short trade can be tried on the rise near or within the range of 17168---17268 with a stop loss of 17340 or sell if it remains below 16950 for some time with a stop loss of
17000.It is into major correction
mode and long term trend is also threatened. The bias is bearish 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 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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