CNX-NIFTY
Open—16273.65--High—16275.50—Low—16157.90---Close-16220
.60 on 8.7.2022.
Support:16203.25/16172.60/16162.55/16133.57/15991//15986.42/15962.25—914---903---895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:16376.05/16410.20/16472/16490//16565/16695/16701.55/16752.40/16793.85/
16824.70---833---837/16888.70/16891.70/16894/17006--003.
(Bold and underlined
figures are most important)
The pullback rally is on and
it has decisively crossed its critical range of 15986—15991, which is a
positive sign. Please note that it is above its short and some of the medium
term moving averages now and some important technical indicators on the daily
chart are also positive (but technical indicators are weak on the weekly and
monthly chart as of now and it is still below its long term moving averages
also, therefore it is very much likely to resume down move again once the on-going rally ends ),
furthermore it is also making higher top & bottom on the line and the bar
chart, therefore all together it is showing good strength now and indicate that
up move may continue for some more time. It is important to mention here that
in all probability it is a pullback rally and you are well aware that these
rallies can end abruptly as it happened in the past also, so although up move
is indicating strength and short term bias is up now, but one should be
extremely alert and vigilant in the long trade at this juncture.
Kindly note that moving up it
may face stiff resistance at 16276---16376---16414---16440---16472---16490---16662---16793.55---16894
and this rally may end at any of these points or earlier also, but if it moves
above 16440(this figure changes every day) and sustain on the closing
basis then, it may show meaningful strength and then the rally can extend
further. Similarly moving down break below 16095.89(figure will move up if
it crosses it recent high of 16275.50) on the closing basis can push it
into very short term corrective mode and sustained break below the range of 16017---15991---15986.42
on the closing basis may end the rally for good and down move will start. But
bounce back above this range may resume the up move again, which may please be
noted.
In view of the above observation,
long trade can be tried if it moves above 16276 and maintains for some
with a stop loss of 16170 or on decline
near 16100 and then near or within the range of 16017---15991---15986.42
but not below this range with a stop loss of 16050 & 15940
respectively. It is suggested to be extremely cautious and watchful in long
trade at this point of time. Short trade can also be attempted near 16276
if it does not move above it even intraday in first one and half hours of
trade with a stop loss of 16340 or on the price breakdown for intraday corrective
gains. The short term trend is positive as of now, but the medium and long term
trend is still in danger.
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.
Contact me for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
