A TECHNICAL VIEW ON CNX-NIFTY FOR—21.1.2021

 

CNX-NIFTY

 Open—14538.30 --High—14666.45—Low—14517.55---Close-14644.70 on 20.1.2021.

Support:14568/14310/14222.80/14177/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.                                                                                                                                                           

Resistance: 14653.35/14666.45/14840/14890/15022/15471/15868.     

 (Bold and underlined figures are most important)

As it closed way above 14568 therefore it seems that the correction is over and if it holds this level then the up move will continue. 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 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 all its key points and most critical point of 14310 which is an extremely positive sign for the continuation of the up move. Please note that sustained break below 14294.18 & 14199.50  will push it into very short term correction, sustained break below 13917.53 on the closing basis will push it into deep real short term correction mode, sustained break below 13741.65 will push it into medium term correction mode which can last 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.

The overall technical setup is looking good. The correction seems to be over for sure as it closed way above 14568 point and also crossed recent all-time high of 14653.45 and made new high of 14666.45 but closed shade lower from the previous high of 14653.45, but now if it moves and sustain above 14653.45 on the closing basis then it is likely to move up to 14771---14818---14840---14890—14920—15022---15350---15471 levels and very much likely to make a top for the time being in this range or earlier also in coming days. But please note that if it moves and sustain above 15471 on the closing basis then it may be heading for a big rise which may please be noted. It is important to mention here that if it closes below 14561.75 on 21-1-2021 and sustain below it then also it can slip into short correction again. The important range for the day would be between 14561.75---14653.45---14770.60. The long term bias is up as of now.

Moving down its critical support points at 14568--- 14561.75---14469---14310---14294.18---14199.50---14024.85---13917---13777.50---13741.65---13693.

Moving up its critical resistance points at 14666---14771---14818---14840---14890---14920---15022---15350---15471---15868.

In view of the above observation for safe traders long trade can be tried if it moves above 14653.45 and maintain for some time or buy on decline but not below 14561. However, aggressive traders can try long trade on decline at appropriate points but not below 14281 or if it moves and sustain above 14653.45 for some time. Since correction seems to be over therefore short trade in general should be avoided but can be attempted after a reasonable rise in the appropriate range or on the price breakdown for taking advantage of the intraday down correction.

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 moves and maintains above 14653.44 for some time with a stop loss of 14600.

Or

Buy on decline at appropriate points or near 14561 but not below it with a stop loss of 14510.It is for safe traders.

Or

Buy on decline at appropriate points or near 14281 but not below it with a stop loss of 14250.It is for aggressive traders and could be a risky trade

2. Sell on the rise near or within the range of 14750---14780 with a stop loss of 14810. It could be a risky trade but worth trying.

Or

Sell if it maintains below 14510 for some time with a stop loss of 14565.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.