CNX-NIFTY
Open-17808.30--High—17811.50--Low-17637---Close-17656.35
on 25.10.2022.
Support: 17639.50 /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: 17670.95/17685/ 17759.30/17777.65/17797/17827/17860/17920/17947.55/17992.70/18096.15/18112.60/18114.65/18217/18342.05/18350.95/18604.45—19329.
(Bold and underlined figures
are most important)
It opened with an up
gap but could not sustain at the upper levels and slipped down and in the
process filled today’s gap and finally ended the day with a loss of 74.30 points. Please note that after seven
days of rise in a row it corrected today and it made a bearish candle today but
price pattern is not that weak but watch out, furthermore it has given upside
breakout from its major downtrend line which is positive sign, but it has to
sustain this breakout for the continuation of the up move and for that it has
stay above the downtrend line which is place at 17615(figure will change every day) for the day close below 17585 will decisively push it back
within the trend line which would be a weak sign. Moving up from here it will
face resistance at 17685---17778---17797---17827---17920---18096.15---18114.65---18350.95---18604.45, please note that 17685---17827 & 17920 could be tough resistance
points and if it moves above 17920
and sustain on the closing basis then the possibility is that it could retest
its all-time high of 18604.45 or may
go beyond it also, but a close above 18114.65
will almost ensure that it could retest or go beyond its all time high also,
else it may retreat back. Similarly going down it will find support at 17615---17608---17560---17482----17408.75---17387---17354---17345---17298---17293---17195---17161---17137---17066---17045---16983---16950---16931---16903---16894,
break below 17608 will push it
into very short correction, break below 17560
may deepen correction and sustained break
below the range of 17408.75---17387---17354 will weaken the up move and may
accelerate the fall.
Its overall technical setup looks o.k., furthermore all the four important
technical indicators have turned positive on the daily chart, which is a very good
sign and most importantly it has given upside breakout from major downtrend
line. Therefore it seems that the up may continue with intermittent down
correction provided it holds its downtrend line breakout and eventually 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 bias is up as of now.
In view of the above observation, for
safe traders long trade can be tried if it moves above 17685 and maintain for some time with a stop loss of 17640 or can try buy on decline near 17615 & 17608 but not below it
with a stop loss of 17550, however
aggressive traders can also try buy on decline near or within the range of 17408.75---17387---17354 but not below it
with a stop loss of 17290, please
note that long trade below 17560
could be a risky affair for the day. Although, it is in up momentum but short
trade can also be tried on the reasonable rise or on the price break down for
intraday gains. Sell on the rise near or within the range of 17850---17880 with a stop loss of 17940 or sell if it moves below 17550 with a stop loss of 17620.
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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