CNX-NIFTY
Open-17423.10--High—17584.15--Low-17421---Close-17563.90
on 20.10.2022.
Support: 17530.85/ 17490.70/17484.30/17429.70/17387.15/17354.05/17345.20/17298/17291/17140/17006/16995/ 16950/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16747.20/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance: 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 and then went up and in the process filled today’s gap and finally
ended the day with a gain of 51.70 points.
Please note that it has been rising for the last five days in a row, so a
correction may be round the corner and any
strait rise from now on will make it more vulnerable for correction. Furthermore
the gap it created on 18.10.2022 is
still there and if it makes an effort to fill this gap in the next 1-2 trading sessions which is
technically possible then it can come down to 17328, but if it does not fill the gap in stipulated time then
chances of filling the gap will recede. So be watchful.
It is well placed above its critical points of 17408.75---17387 & 17354 which is a
very positive sign and if it sustains above these points on the closing basis
the up move may continue with in between short corrections. It is important to
mention here that moving up it will face very stiff resistance from its major
down trend line which is placed at 17635(figure
may change every day) for the day, for smooth up journey it has to move
above it and sustain on the closing basis else it may retreat back also. Moving
up from here it may face resistance at 17581---17635----17643---17685---17797---17827---17920---18096.15---18114.65---18350.95---18604.45,
please note that if it moves above 17920
and sustain on the closing basis then it could retest its all-time high of 18604.45 or may go beyond it also. Similarly
going down it will find support at 17408.75---17387---17354---17345---17298---17229---17161---17137---17045---16983---16950---16931---16903,
sustained break below the range of 17408.75---17387---17354 will weaken the up move and will get
into corrective mode as well for its recent rise and may start to drift down.
Its short term technical setup has improved , furthermore all the four important
technical indicators have turned positive on the daily chart, which is a very good
sign. Therefore it seems that the up may continue provided it holds its
critical points of 17408.75---17387 & 17354 on the closing basis. Please note that I have time and again
said that the volatility is not good for a steady up move, although technical
setup, price pattern and important indicators are all good at this point of
time but because of volatility it all can turn bad in just 2-3 trading session,
therefore be extremely alert and cautious in the long trade now for some time.
The undertone is mixed as of now.
In view of the above observation,
long trade can be tried if it moves above 17600
and maintain for some time with a stop loss of 17550 or can try buy on decline near or within the range of 17408.75---17387---17354 but not below it
with a stop loss of 17290. Although,
it is out of major corrective mode and is in up momentum but short trade can
also be tried on the rise or on the price break down for intraday gains. Sell
on the rise near or within the range of 17690---17720
with a stop loss of 17770 or
sell if it moves below 17290 with a
stop loss of 17390. It is still in the long term uptrend.
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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