CNX-NIFTY
Open-17966.55.15-High-17992.20-Low-17710.75-Close-17758.45
on 19.8.2022.
Support:17639.50/17490.70/17387.15/17382/17354.05/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened on a positive note and went
up further and crossed its previous day’s high and then gradually started
moving down and finally ended the day near the low of the day with a loss
of 198.05 points. As
anticipated it corrected today in fact it has given copy book key upward
reversal today which is highly concerning and this price pattern can put an
abrupt end to the on-going uptrend and drag it down sharply if not negated in
next 1-2 trading session. Kindly
note that to negate this reversal and to keep the hope alive for the
continuation of the uptrend it has to move above its major down trend line
again and sustain on the closing basis and then to move above 17920 and sustain on the closing basis
to pick up strong up momentum. It’s down trend line is placed at 17800(figure will change every day) for
the day and close below 17760(figure
will change every day) for the day will keep it marginally below the trend
line, which would be a bad sign. However moving up its key resistance points
would be at 17800---17920---18114.65---18350.95---18604.45 but
in between it could face other resistance points too, please note that market
could correct from any of these points or earlier as it has corrected today but
it will pick up strong up momentum only once it moves above 17920 and sustain on the closing basis
else it may drift down. Similarly moving down its key support points would be
at 17625.59(this figure will scale up if it moves above 17992.20) ---17387.15---17382---17354.05---17329.32---17298---17172.80----17158.25----17100.
Please note that it has already slipped into very short correction mode today
as it closed below its threshold point of 17796,
break below 17625.59 will weaken it further, sustained break
below the range of 17388.15---17387.15---17382--17354.05---17329.32 on
the closing basis may jeopardize the on-going uptrend and finally break
below 17100 may accelerate the fall.
The overall technical setup still looks
o.k. despite today's down move, because it is still making, higher top &
bottom on the line and the bar chart which is a very positive sign. But some of
the important technical indicators have show weakness on the daily chart today and
most importantly today’s reversal which is highly concerning and if reversal is
not negated in next 1-2 trading
session then indicators weakness will come into play and it may go down sharply.
Therefore it is suggested to avoid long trade till it moves above the down
trend line and its recent top of 17956.50(on
the line chart) on the closing basis and then hold its critical point of 17920 on the closing basis. Please note
that today’s reversal has put a question mark on the on-going uptrend therefore
buy on dip strategy should be put on hold till clarity on the continuation of
the uptrend emerges.
In view of the above observation for
safe traders long trade can only be tried once it closes above 17957 and avoid buy on
decline for the day. However highly aggressive traders can try long trade if it
move above 17800 and maintain for some
time with a stop loss of 17740 or can buy on decline at appropriate points or
near or within the range of 17387.15---17382---17354.05---17329.32
but not below it with a stop
loss of 17280. Although it is in the uptrend as of now but
slipped into corrective mode today therefore 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 17860---17920 but
not above it with a stop loss of 17970 or sell if
it moves below 17710 with a stop loss of 17810. Please
note that long trade could be a risky affair for the day In light of today’s
reversal short trade may not be that risky bet therefore worth trying at this
juncture. The short, medium and long term trend is still positive as of now,
but it has gotten into corrective mode today therefore it has to be seen how
correction culminates.
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.
