Tuesday, 9 February 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR—10.2.2021

 

CNX-NIFTY

 Open—15164.15--High—15257.10—Low—15064.30---Close-15109.30 on 9.2.2021.

Support:15069/15022.20/14920/14890/14823/14753.55/14653.35/14222.80/14046/14024.85/13996.11/13981.75/13818.20/13777.50/13721/13713.25/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.                                                                                                                                                           

Resistance:15195.50/15257/15350/15471/15868/15941/16047.           

 (Bold and underlined figures are most important)

It closed shade lower today than the previous day’s close which is not sufficient therefore it has to correct reasonably well to give strength for the up move to continue in a steady manner. Furthermore the gap it created son 2.2.2021 and on 8.2.2021 is still there and if it makes an effort to fill both the gap in that case it can come down to 15014 & 14336 levels which may be kept in mind. Its most critical points for the year 2021 are 14024.85---13996.11 & 13981.75 and it is way above these points and as long as it holds these points on the closing basis uptrend will remain intact. Its other key points are at 14865.21---14755.45---14202.91---13429---12430.50(except for 12430.50 other figures can change). It is well above it’s all the key points also which is a positive sign. Please note that sustained break below 14865.21 & 14755.45 on the closing basis  can push it into short term correction mode which can last for 5-7 days or may be more but if it corrects and does not break the said points on the closing basis then that corrective move may end in 1-3 days also, sustained break  below 14202.91 on the closing basis will push it into medium term correction mode and it can last even longer and most importantly sustained break below 13429 on the closing basis can push it into long term correction mode and will potentially threaten the uptrend and finally sustained break below 12430.50 on the closing basis will further dampen the uptrend for sure, which may please be noted.

It corrected by meager 6.50 points today which is not sufficient therefore it has to correct moderately or sharply to give strength for a steady up movement. But if it keeps on rising vertically chances of vertical fall is also there. So at this point of time the fear of moderate or sharp correction is  there , therefore be alert in long trade now because it could correct any time soon but as long as it holds the points mentioned in the above paragraph there is no threat to the long term uptrend. The technical setup is strong for the up move to continue but off course with intermittent down correction. Going up it will face stiff resistance at 15196---15257---17350---15471 levels and it may correct at any of these points, but if it moves and sustain above 15471 on the closing basis then there is a possibility of a huge upside ahead, so moving up 15471 would be the most critical point for it which may please be noted. The long term bias is hugely positive as of now. 

Moving down its critical support points at 15069---15022.20---15014.65---14865---14791---14755.45---14681---14653.35---14570---14222.80---14202---14128.70---14024.85---14017.68---13996.11---13981.75---13953.75---13777.50---13741.65---13634----13596.75.

Moving up its critical resistance points at 15195---15257---15350---15471---15868---15941---16625.

In view of the above observation long trade can be tried but with extreme caution now because it looks highly vulnerable for a corrective move at this point of time. Traders can try long trade if it moves and maintain above 15116 for some time or can buy on decline at appropriate points or near 14865 but not below it. Since it is in strong up move therefore short trade in general should be avoided but it can be tried after a reasonable rise in the appropriate range or on the price breakdown for taking advantage of the intraday down correction or otherwise but with extreme alertness and caution because the long term technical setup is very strong as of now.

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 sustain above 15116 levels for some time with a stop loss of 15050.It could be a risky trade.

Or

Buy on decline at appropriate points or near but not below 14865 with a stop loss of 14825.It could be a risky trade.

2. Sell on the rise near or within the range of 15260--15300 with a stop loss of 15340. It could be a risky trade but worth trying for intraday correction.

Or

Sell if it moves and sustain below 15014 for some time with a stop loss of 15070. It could be a risky trade but worth trying for intraday correction.

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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