CNX-NIFTY
Open-18303.40--High—18344.20--Low-18229.65---Close-18265.95
on 9.5.2023.
Support: 18265.25/18210.15/18183.75/18141/18132/18124.80/18114.65/18105.30/ 18069/18016/18013/17992/17972.20/17959.20/17916.80/17812/17800/17795.55/17774.25/17761.40/17719.75/ 17680/17641/17597.95/17594/ 17574.05/17553.95.
Resistance: 18350.95/18362.60/18442.15/18473.35/18476---18604.45/16696.10/18887.60.
(Bold and
underlined figures are most important)
It opened with a
small up gap and went up further but could not sustain at upper level and
drifted down, however it closed flat at the end of the day with a meager gain
of 1.55 points. The chart setup still looks good as it is above its short,
medium and long term moving averages on the daily, weekly and monthly chart
this is a positive sign, but one out of four important technical
indicators is slightly weak now, furthermore the price action was also timid, therefore
it may remain lacklustre or move sideways for a while or may head down also, so
it is suggested to be cautious in the long trade at this point of time.
Kindly note that
for the continuation of the up move it has to sustain above its critical range of
18131.70---18105.30on the closing basis, but in worst case scenario the last
critical support range would be 17909---17869(figure may change), if it hold
this range then it can still stage a bounce back, else the on-going up move may
be over and fall may accelerate. Please note that if it
really has the strength it should not break the range of 18131.70--18105.30 now
and if it does so then the on-going up move
may be over for the time being and it may go in for moderate to big
correction this time.
Moving up from here it will face stiff resistance at 18267.45---18273---18362.60---18402---18476.
It can correct at any of these points or earlier also and then may resume the
up move again or may exhaust for a while, so be vigilant at the critical
points. Please note that if it moves above 18362.60 and sustain on the
closing basis it will get out of all corrective mode and up rally may
strengthen and finally if it moves above 18476 and sustain on the
closing basis the in all probability it may retest its all-time high of 18887.60
or may go beyond it also.
Moving down further from here its critical support points would be at 18210.15---18131.70—18124.80---18114.65---18105.30---18065----18042---18032---18013----17963---17943---17905---17881---17861---17864.
These are the important and critical support points and it can bounce back
from any of these points. It slipped into very short correction today for its
recent gain as it closed below its threshold point of 18273, break below
18158 will push it into short correction for its recent rise, break
below 18042 could be very concerning, break below 18007 & 17986
will push it into medium & deep correction for its recent rise and finally
sustained break below the range of 17909---17869 on the closing basis
will put the on-going up move in jeopardy or may be over and it may head
downward. I once again reiterate that to keep the up momentum going it has to
sustain above 18131.70 on the closing basis.
In view of the
above observation, long trade can be tried if it moves above 18267.45 and maintain for some time
with a short stop loss of 18200 or
can be tried on decline near or within the range of 18131.70---18105 but not below it with a stop loss of 18030. Please note that buy on decline
could be a risky trade for the day, but aggressive traders can still try it. Since
it is already into deep corrective mode for its past gains therefore short
trade can also be tried on the rise at appropriate stiff resistance points or
on price breakdown for the intraday
gains. The short, medium and long term technical
setup is still looking good. The long term bias is up as of now. It is still a buy on decline market as of
now but with utmost caution. Do not
trade without proper stop loss.
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 favourable 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.
