CNX-NIFTY
Open-22567.85-High—22710.50—Low—22567.85--Close-22648.20
on 2.5.2024.
Support: 22618.71/22576.09/ 22546/22526.60/22443/22433/22399.
Resistance: 22664.33/22687.04/22730/22775.70/22783.35/22838/23047/23117/23156.
It opened on a negative
note and the open was the low of the day
also, thereafter it steadily moved up and traded in a range during the day and
finally ended the day with a gain of 43.35 points. Although it staged a bounce back today but it is still into very
short correction mode for its recent rise as it is below its threshold point of
22687.04, break below 22546 will deepen the correction, sustained
break below 22526.60 may derail the up momentum and finally sustained
break below the range of 22452---22422 may trigger fresh fall and it may
witness accelerated down move. The bias is bullish as of now, but since it
gotten into corrective mode it may correct further but if it holds the range of
22618.71 & 22568.46 then it can extend the up move and if it moves
above 22687.04 and sustain then it is likely that it may resume the up
move again.
The important technical
indicators on the daily, weekly and monthly chart is giving mixed signal
pointing that it may have both side moves in coming days/week/months with a
slight downward bias. But please note that the moving average placement is good
and the price action is also more or less has been consistently positive,
therefore if these parameters remain good the up move may continue and
eventually the indicators may also turn positive but as of now indicators
weakness is still a concern. The long term trend is up therefore it is buying
on decline market now but it is short correction also so be cautious. The
volatility is still continuing which is not a good sign for a steady market and
eventually it can drag it down in coming days/weeks & months, so be alert
and watchful and ride the on-going rise with slight caution because it may give
severe downside corrective jerk at times.
TRADING CALL: --
1. Long trade can be tried on decline near or within
the range of 22618---22570 but not below it and then on sharp decline near
or within the range of 22450---22430 but not below it with a stop loss
of 22520 & 22380 respectively or can buy if it moves above 22688
and maintain for some time with a stop loss of 22600.
2. It is in the long term uptrend therefore short
trade in general could be a highly risky affair; but it is into short
correction mode, therefore short trade can also be attempted on the 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 22770--- 22800 with a stop loss of 22850. It could be a
risky trade but can be tried 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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Thank you for sharing your views.