CNX-NIFTY
Open—17810.55--High—17857.55—Low—17663.80---Close-17790.35
on 7.10.2021.
Support:17756/17700/17630/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -17792.95/17855.10/17885/17920/17947.75/17971/18027/18081/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
After yesterday’s extreme volatility
and sharp down move it opened on a very positive note today and finally closed with
a gain of 144.35
points. It is giving whip saw around correction completion threshold point of 17801; it came out of corrective mode
on 5.10.2021 and decisively slipped
again on 6.10.2021 but made a
valiant attempt today to come out of it but could not and closed shade below
the threshold point of 17801, so
technically it is still in corrective mode. Please note that it has to close
above 17801 and sustain on the
closing basis to come out of corrective mode and thereafter has to move above 17849 and sustain on the closing basis
then it could possibly retest its all-time high of 17947.65 or may go beyond it also else it may slip down again. Moving
up from here it will face stiff resistance at 17801---17831---17849---17858---17885---17920---17947.65---17971---18082---18137---18254---18548(figures
may change) and it could react from any of these points which may please be
noted. Similarly moving down its critical support points could be at 17784---17726---17710---17680---17610----17577---17526---17450---17326(figure
may change), it may bounce back from any of these points,it is still in
very short term corrective mode, break below 17680 will be an alert point, break below 17610 & 17577 will weaken it further, sustained break
below 17452 on the closing will indicate that the on-going
uptrend may be in jeopardy and sustained break below 17326 may accelerate the
fall.
It is important to mention here that its
long term technical setup is still good for the
uptrend to continue. It is into corrective mode now, furthermore certain
important technical indicators are giving weak signal on the daily chart which
may drag it down in coming days provided it does not come out of the corrective
mode and sustain above its critical points, so one has to be cautious and alert
in the long trade at least till the indicators turn positive or it closes above
17849(figure may change) and sustain
on the closing basis. The short term bias is slightly weak at this point of
time.
In view of the above observation, it
is into corrective mode therefore safe traders should avoid long trade till it
gives visible indication of correction completion. Therefore it would be safe to try long trade only once it closes
above 17849(this figure can change). However, aggressive traders can
try long trade if it moves above 17825 and
maintain for some time or can buy on decline at appropriate points or near 17650 and then near 17577 but not below it.
Please note that long trade in a corrective market could be a risky affair.
It is in the long term uptrend but in corrective mode, it is in pullback mode
now but one never know how this on-going correction will culminate, therefore short
trade can also be attempted on the rise and at appropriate point or can be
tried on the price breakdown for taking advantage of the intraday 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.
TRADING STRATEGY (Suggested)
1. Buy if it moves above 17825 and maintain for some time with a
stop loss of 17750. It is for the aggressive traders and could be a risky
trade.
Or
Buy on decline at appropriate points or near 17650 and then near
17577 but not below it with a stop loss of 17600 & 17530 respectively. It
is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near 17950
with a stop loss of 17980. It could be a highly risky trade but worth trying
for intraday gain.
Or
Sell if it moves below 17750
and maintain for some with a stop loss of 17830. It could be a highly risky
trade but worth trying for intraday gain.
Or
Sell if it does not move
above 17860 in first one and half hour trade with a stop loss of 17900. It
could be a highly risky trade but worth trying for intraday gain.
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.
Contact me for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
suranank@gmail.com
Mobile—8240951127/9831313654.
