CNX-NIFTY
Open-22214.10--High—22229.15—Low—21915.85--Close-21951.15
on 28.2.2024.
Support: 21926.76/21834.35/21813.05/21801.45/
21763.95/21750.25/21731.40/21727.75/ 21593/21500.35/
21448.65/21285.55/ 21137.20/20976.80/20769.50/20291.55/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.
Resistance: 22079.67/ 22124.15/ 22126.80/ 22249.40/22252.50/22297.50/22371/22453/22514/22590/22618/22782/22864/23082/23111/23124/23587.
(Bold
and underlined figures are most important)
It opened on a positive
note and inched up little further and then steadily moved down and finally
ended the day with a loss of 247.20 points. It is needless to mention here that it has
been exhibiting volatility for a long time now and having a see-saw movement
quite often, which is a concern and it
is not a good sign for a steady market and may eventually drag it down sharply
in coming days/weeks & months. It is important to mention here that the gap
filling threat for earlier gap on the daily & weekly chart has faded out
but please note that eventually it will fill the gap someday(weekly gap of
20291.55 is yet to be filled), which please note.
Again today it closed well below the Inverse Head & shoulder pattern
(bullish pattern) neckline which is placed at 22126.80, please note that it has
been giving whip saw movement around this point in the last few days, which indicated
potential weakness and today it plunged down sharply below this point,
furthermore it slipped into short & deep short term correction mode for its
recent rise as it closed below its threshold point of 22116.47 &
22023.67(figure may change). Please note that if it does not bounce back above all
these points in a shortest possible time and sustain on the closing basis then
it may be heading for sharp fall in coming days.
Moving down the important support points could
be at 21945---21914-----21823---21801.45---21748---21731.40----21727.75----21711----21692----21683---21593---21500----21448.65---21370.12----21285.55----21137.20(figures
may change), it may bounce back from any
of these points and may resume the up move again, but sustained break below the
range of 21801.45----21727.75 will
trigger fresh fall and then break below each point will weaken it further and
sustained break below 21137.20 may accelerate the fall.
Similarly moving up
important resistance points could be at 22007.48---22023.67----22116.47---22126.80---22252.50---22297.50---22376---22457---22623---22787---22870---23117.
Please note that
sustained close above the range of 22023.67----22126.80 may put it back
on the up move track.
It is important to mention here that one out
of five important technical indicators is only positive now and four most important indicator
has turned negative today on the daily chart giving clear indication that it
may continue to head down from here in coming days. One most important
indicator on the weekly & monthly chart is also negative and pointing that
it could head down in coming weeks/months. Furthermore today it fell below some
of its short term moving averages on the daily chart, made lower top &
bottom on the line chart and the price action is also weak. Therefore all
together things are very dicey and pointing that if it fails to stage a strong
bounce back in a day or two and move above its critical range as mentioned
above then the down move may continue. But please note that in worst case
scenario as long as it holds 21671(figure may change) on the closing
basis chances of up move will be alive. It is sell on the rise market
now.
TRADING TIPS:--
1. Safe traders should avoid long trade till it
closes above 21126.80. However, aggressive traders can try long trade on
decline near or within the range of 21800---21727 for some time with
a stop loss of 22660. . Please note that long trade in a corrective
mode could be a risky affair, but can be tried in strong support range or point
for pullback gains.
2. It is in the long term uptrend therefore short
trade in general could be a highly risky affair; but it has slipped into
correction mode , therefore short trade can be attempted on reasonable rise or
on price breakdown for intraday corrective gains but with extreme caution and
alert. Short trade can be tried on the rise near or within the range of 22150---
22175 with a stop loss of 22240 or sell below 21915 with a
stop loss of 22030. It could be a risky trade but worth trying for
intraday corrective gains.
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.
Thanks
Narendra
Kumar Surana
Mobile—8240951127/9831313654.
Email--- suranank@gmail.com
