CNX-NIFTY
Open-17679-High-17726.50-Low-17487.45-Close-17522.45
on 25.8.2022.
Support:17490.70/17387.15/17382/17354.05/17345/17298/17140/17003/16995/16894/16891.70/16888.70/16824.70/16793.85/16752.40/16701.95/16695/16627/16588/16565/16541/16490/16472/16410.20/16376.05/16275.50/16203.25/16172.60/16162.55/16133.57/15991/15986.42/15962.25/15914/15895/15775/15735.75/15671.45/15632.72/15578.55/15566/15513.45/15511.05/15450.90/15431.75/15367.50/15183.40.
Resistance:17639.50/17794/17797/17920/17947.55/18112.60/18114.65/18210.15/18342.05/18350.95/18604.45.
(Bold and underlined figures
are most important)
It opened on a positive note and
moved up further but could not sustain at the higher level and plunged down in
last half hour and finally ended the day with a loss of 82.50 points. It is in corrective mode and the on-going up move was
a pullback rally which can possibly exhaust at these points 17668.70---17745---17839---17862 or
earlier also or may have exhausted today
and most importantly close below 17490.70
as of now will confirm the end of the pullback rally and start of a major down
move. Please note that to resume the strong uptrend again first it has to move
above its major down trend line which is placed at 17770(this figure will scale down every day) for the day and then move
above its critical resistance points of 17920---17957
on the closing basis then it may be back on the up track again, else down move
will continue with intermittent relief rallies, but looking at today’s move
resumption of uptrend is less likely. Moving down its key support points would
be at 17490.70---17387.15---17382---17354.05---17329.32---17298---17172.80----17158.25----17100.
Please note that it is already into very short correction mode as it is below
its threshold point of 17796, it is also
below its next key support level of 17625.59
which has weaken it further,
break below 17490.70 on the
closing basis will signal the end of the pullback rally, 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 sustained break below 17090 may accelerate the
fall.
The overall technical setup is still
o.k. , but after making, higher top & bottom on the line and the bar chart
for a long time it has made a lower top on the line chart today which is
concerning, it will signal break down once it establish lower bottom by closing
below 17490.70 so watch out. Furthermore almost all except for one important
technical indicators are showing distinct weakness on the daily chart, it is also
below some of its short term moving averages which is a bad indication,
therefore if it does not bounce back sharply in shortest possible time and move
above its critical points then the fall looks inevitable and it may go down
sharply with in between short relief rallies. Therefore it is suggested to
avoid long trade till it moves above the down trend line and then its recent
top of 17604.95(on the line chart) & 17956.50 on the closing basis and
then hold its critical point of 17920 on
the closing basis. Please note that after the key upward reversal on 19.8.2022 the on-going uptrend seems to
be in potential danger, therefore buy on dip strategy should be put on hold for
safe traders 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 then hold 17920 avoid buy on decline for the day.
However highly aggressive traders can try long trade if it moves above 17605 and maintain for some time with a
stop loss of 17480 or can buy on
decline at appropriate points or near or within the range of 17490.70---17387.15---17382---17354.05---17329.32
but not below it with
a stop loss of 17280. Please note
that long trade below 17490.70 could
be a risky bet for the day, therefore I would suggest avoiding long trade on
decline for the day. Although it is in long term uptrend as of now but into
corrective mode therefore short trade can also be attempted after a reasonable
rise or on the price breakdown for corrective gains. Sell on the rise near or
within the range of 17630---17660 but not above it with
a stop loss of 17730 or sell if it moves below 17490 with
a stop loss of 17615. Please note that long trade could be a risky
affair for the day as it is in a corrective mode but short trade may not be that
risky bet now therefore worth trying at this juncture. The short term trend is
in corrective mode, medium and long term trend is still positive as of now, but
since it is into corrective mode 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.
