CNX-NIFTY
Open-22020.30--High—22068.65—Low—21968.95--Close-22040.70
on 16.2.2024.
Support: 21926.76/21834.35/21813.05/21801.45/
21763.95/21750.25/21731.40/21727.75/ 21593/21500.35/ 21448.65/21285.55/ 21137.20/20976.80/20769.50/20291.55/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.
Resistance: 22053.30/22124.15/22126.80/22220/22393/22459/22514/22590/22618/22782/22864/23082/23111/23124/23587.
(Bold
and underlined figures are most important)
It opened with an up gap
and had both side moves during the day and in the process almost filled the day’s
gap and finally ended the day with a gain of 129.95 points. But technically speaking the gap is still there and if it makes
an effort to fill the gap in next 4-5 trading sessions, which is
technically possible then it can come down to 21953.85, but if it does
not fill the gap in the stipulated time then the chance of filling the gap will
recede for a while. It has been exhibiting volatility for a long time in fact it
is giving see-saw movement quite often, which is not a good sign for a steady
and smooth market and can eventually drag it down lower. It is important to
mention here that the gap filling threat for earlier gap on the daily &
weekly chart has faded out but please note that eventually it will fill the gap
someday(weekly gap of 20291.55 is yet to be filled), which please note.
It is most important to mention here that it is in the process of making
an inverse Head & Shoulder pattern on the daily chart and its neckline is
placed at 22126.80 and if it gives an upside breakout from this point( it is
inching towards it) and sustain on the closing basis then the maximum upside
target could be 23120, similarly sustained break below 21448.65 may negate this
pattern which please note.
The chart setup is good now and if it manages
to hold the key points of 21926.76----21893.25
& 21801.45 on the closing basis then
it is likely to continue the move up. Moving up from here its
target or resistance points could be at 22124.15/22126.80/22220/22393/22459. Similarly moving down the other support
points could be at 21781---21748---21731.40----21727.75----21702----21593---21500----21448.65---21370.12----21285.55----21137.20, sustained break below the range of 21781---21702 may trigger fresh fall and then
break below each point will weaken it further and sustained break below 21137.20
may accelerate the fall.
It is important to mention here that three out
of five important technical indicators are positive and two indicators are negative
on the daily chart giving mixed signals that it may swing either way as of now
in the coming days. Furthermore one most important indicator on the weekly
& monthly chart is also negative pointing that it could head down in coming
weeks/months. But please note that the other important parameters such as
moving average placement and price action is good, therefore if these parameter
remains good and it holds its key points as mentioned above then the up move
will continue and last but not the least in worst case scenario as long as it
holds 21370.12(figure may change) on the closing basis chances of
up move will always be alive.
TRADING TIPS:--
1. Long trade can be tried on decline near or within
the range of 21930---21893 with a stop loss of 21700 or if it moves
above 22069 and maintain for some time with a stop loss of 21980.
2. It is in the long term uptrend therefore short
trade in general could be a highly risky affair; however, even then short trade
can be attempted on reasonable rise or on price breakdown for intraday
corrective gains but with extreme caution and alert. Short trade can be tried
on the rise near or within the range of 22125--- 22140 with a stop loss
of 22180. It could be a risky
trade but worth trying for intraday corrective gains.
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.
Thanks
Narendra
Kumar Surana
Mobile—8240951127/9831313654.
Email--- suranank@gmail.com
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