CNX-NIFTY
Open-17695.70--High—17764.65--Low-17587.65--Close-17655.60
on 6.9.2022.
Support:17639.50/ 17490.70/17485.70/17387.15/17354.05/17345.20/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17759.30/17777.65/17992.70/17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened with a
small up gap and went up further but could not sustain at the upper level and
slipped down and finally ended the day with a meager loss of 10.20 points. It is still above its
short term moving averages, which is a positive sign but it has been giving
whip saw around it quite often; therefore it is to be seen how long it stays
above it. It did move above its major down trend line intraday today but at the
end closed well below it, which is a concern. Please note that to get into the
steady up move grove it has to move above its major down trend line which is
placed approximately at 17745(figure may
change every day) for the day and sustain above it on the closing basis and
then to catch up the strong up momentum it has to move above 17920 and sustain on the closing basis
and if it does so then it could retest it’s all time high of 18604.45 or may go beyond it also else
it may drift down again. Moving up its key resistance points would be at 17777.05--17797---17827---17920---17956.50---17992.20---18114.65---18350.95---18604.45.
Similarly moving down it will find good support at 17618---17573---17495 break below 17618 will be an alert point and break below 17495 may accelerate the fall, going down it has a bed of support
in the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90
you would recall that it has bounced back from this range recently couple of
times; therefore till it holds this range chances of up may remain intact, but
sustained break below this range on the closing basis may begin a steady down
move which may please be noted.
The technical setup is still o.k.,
but it has to be closely watched over the next few days that whether it gives upside breakout from the
major down trend line or not and then continue the up move to cross its
important resistance point of 17920 ,
because almost all important technical indicators except for one are still showing
weak sign on the daily chart, therefore if these indicators do not turn
positive shortly then weakness in indicators may come into play which can drag it down, but
the silver lining here is that as of now the price pattern is not showing any
sign of breaking down. Therefore it seems that it is moving in a range now so
please wait for few days for a decisive direction so watch out.
In view of the above observation long
trade can be tried if it moves above 17670
and maintain for some time with a stop loss of 17570 or can buy on decline near or within the range of 17387.15---17377---17354.05---17345.20---17329.32---17312.90
with a stop loss of 17280.
Please note that long trade below 17539
could be a risky bet for the day. Although it is in the long term uptrend but in
corrective mode now therefore short trade can also be tried after reasonable
rise or on price breakdown for intraday corrective gain. Sell on the rise near
or within the range of 17780----17820 with
a stop loss of 17860 or sell if it moves
below 17485 with a stop loss of 17560. It is still in short term
corrective mode, but medium and long term trend still looks o.k. 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.
