Saturday, 16 January 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR—18.1.2021

 

CNX-NIFTY

 Open—14594.35 --High—14617.45—Low—14357.85---Close-14433.70 on 15.1.2021.

Support:14310/14177/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.                                                                                                                     

Resistance: 14551/14602/14653.35/14840/14890/15022/15471/15868.                                                                                                                

 (Bold and underlined figures are most important)

It corrected today but still looking good for the up move but at the same time there is a possibility also that correction may last for few days. Its most critical points for the year 2021 are 14024.85 & 13981.75 and as long as it holds these points the uptrend will be intact off course with intermittent correction but sustained break below these points on the closing basis could be a potential indication that it could slip into long term correction mode. Its other key points are at 14294.18---14199.50---13917.53---13741.65---12967.78---12430.50(except for 12430.50 other figures can change). It is well above the key points, which is a positive sign for the continuation of the up move. Please note that sustained break below the key points of 14294.18 & 14199.50 can push it into very short term correction mode which can last for 2-3 days, sustained break below 13917.53 on the closing basis will push it into deep short term correction mode which can last slightly longer, sustained break below 13741.65 will push it into medium term correction mode which can last even longer and most importantly sustained break below 12967.78 on the closing basis can push it into long term correction mode and will potentially threaten the uptrend also and finally sustained break below 12430.50 on the closing basis will further dampen the uptrend for sure, which may please be noted. It is important to mention here that sustained close below 14310 could take it down to 13768 level or below which may please be noted.

The technical setup is looking strong for the continuation of the up move. It corrected today but despite that it is well above its key points as of now, but looking at the overall technical parameters and indicators there is a strong possibility that either it has already made a top at 14653.35 or most likely to make the top in the range of 14655---14840---14960---15022---15471 or earlier also in coming days. It is already in the vulnerable zone, therefore it is suggested to be extra ordinarily careful and cautious in the long trade henceforth. The bias off course is positive as of now but in view of the above correction could kick in any moment so be alert.

Moving down its critical support points at 14310---14294.18---14199.50---14024.85---13917---13777.50---13741.65---13693.

Moving up its critical resistance points at 14654---14840---14940---15022---15471---15868.

In view of the above observation long trade can be tried if it maintain above 14440 for some time or can be tried on decline near but not below 14310. But looking at today’s correction long trade could be a risky affair for the day. It is in the strong up move therefore short trade in general should be avoided but chances of correction is also looking strong at this point of time therefore short trade can also be attempted on the rise at appropriate price range or on the price breakdown for taking advantage of the intraday corrective move.

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.

TRADING STRATEGY

1. Buy if it maintains above 14440 for some time with a stop loss of 14400.

Or

Buy on decline near 14310 but not below it with a stop loss of 14280.

2. Sell on the rise near or within the range of 14550---15595 with a stop loss of 14620.It could be a risky trade but worth trying.

Or

Sell if it moves and maintains below 14310 for some time with a stop loss of 14365.It could be a risky trade but worth trying.

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.

 

Contact me for strategic guidance to enter and exit trade.

 

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.

 

 

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