CNX-NIFTY
Open—16774.85--High—16947.65—Low—16746.25---Close-16929.60
on 28.7.2022.
Support: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:16995/17003/17140/17298/17354.05/17387.15/17490.60/17639.50/17794.60/17947.55.
(Bold and underlined
figures are most important)
It opened up with an up gap
and steadily moved up and closed with a good gain of 287.80 points. It
decisively closed above its recent top of 16719.45 on the line chart and
breakout point of 16793.85 on the bar chart which is a huge positive
sign. Furthermore by closing above its critical point of 16894 it has
opened up the upside range of 17298, so as long as it holds 16894
chances of hitting 17298 on the upside will be alive, but sustained
break below 16894 could drag it down to 16490, which may please
be noted, here please note that it has to move above its most important and
critical points of 17354.0517387.15 and sustain on the closing basis to
pick up strong up momentum. It is important to mention here
that it can make an attempt in next 3-4
trading session which is technically possible to fill the gap it created today
and if it does then it could come down to 16654 but if it does not fill
it in 3-4 days then the chances of filling the gap will recede. Moving
up it will face resistance at 16995---17140---16175---17298---17354.05---17387.15.
Similarly moving down key support points are at 16894---16827.55---16690---16531---16490---16417---16382---15991---15986.42.
Please note that break below 16827.55(figure can change) could push it
into short correction mode.
The overall technical setup looks
good as of now, furthermore some important technical indicators are positive on
the daily chart and it is also making higher top & bottom on the line and the
bar chart, so till it holds it recent bottom of 16483.85 & 16438.75
on the line & bar chart respectively and other key points on the downside
as mentioned in the above paragraph the up move is likely to continue with in
between down correction. It important to mention here if it has the desired strength
it is not likely to break 16719.45 on the closing basis
In view of the above
observation long trade can be tried if it moves above 16950 and maintains
for some time with a short stop loss of 16870 or can buy on decline near
16827 but not below it with a stop loss 16770. Although it is in the
uptrend but short trade can also be attempted after a reasonable rise or on the
price breakdown for intraday corrective gains. Sell on the rise near or within
the range of 17100---17130 with a
stop loss of 17180 or sell if it moves below 16740 with a
short stop loss of 16790.The short term bias is positive but medium and
long term bias is still in danger 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 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.
m for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
