CNX-NIFTY
Open-17287.20--High—17337.35--Low-17216.95---Close-17314.65
on 7.10.2022.
Support:17298/17291/17140/
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: 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 had good but
volatile movement during the week ended on 7.10.2022.
As it defended its long term moving average range of 17083—16788(figure will change every day) therefore it bounced back
from this range and gave a smart pullback up move and it did crossed its most
important and crucial point of 17354.05
& 17387.15 intraday but could not close above it, furthermore it
slightly moved above its approximate pullback ending target point of 17422 ( actual-17428.80)intraday but retreated back, therefore it seems
that the pullback rally may be over for now(see
my post for 3.10.2022), please note that to keep the hope alive for the
continuation of the up move it has to close above 17354.05 & 17387.15 and sustain on the closing basis else it
may resume the down move again. But it is important to mention here that as
long as it holds its long term moving average range of 17083—16788(figure will change every day) it may bounce back from
this range but sustained break below this range may witness sharp down move
which may please be noted. Meanwhile it is already into major correction mode
if it stays below 17408.75 and it
will slip into very short term correction
mode for the recent rise it had if it stays below 17268,however as long as it holds 17066 & 17024 chances of the pullback up move will still be there. Moving down from here it may find good
support at 17168---17088---17066---17024---17007---16908---16883,
similarly moving up it will find stiff resistance at 17263---17333---17354---17387---17422---17472---17581---17643---17685---17778----17827---17920.
Its short term
technical setup is still looking weak as it is below some of its short term
moving averages on the daily chart, below some medium and long term moving
averages also, furthermore all the four important technical indicators are
still weak on the daily chart, which is highly 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 for the next few day, it
did stage a sharp recovery during the week but could not move above its
critical points of 17354.05 &
17387.15 on the closing basis. Please note that if it fails to give sharp
up move in a shortest possible time say in next 4-5 trading sessions and move above its critical points stated
above then it may start drifting down again. It is important to mention here that despite good rise the technical indicators are still
pointing that it could hit 16500 levels or may be much lower levels in coming
days/weeks/months. The undertone is bearish as of now.
In view of the above observation, it
is into major correction mode but at the same time above the pullback threshold
points of 17024 & 17066 also. Therefore
both side trades can be tried depending on the price movement. For safe traders
it is suggested to try long trade once it closes above 17387.15 and sustain or on the decline near 17083 with a stop loss of 17000,
but aggressive traders can try long trade if it moves above 17338 and maintain for some time with a
stop loss of 17255 or can buy on
decline at appropriate points with self defined stop loss or near or within the
range of 16890-----16790 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 17430---17470 with a stop loss of 17520 or sell if it moves below 17250 with a stop loss of 17340 or sell below 17216 with a stop
loss of 17280.It is into major correction
mode but long term trend still seems to be 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 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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