Saturday, 20 February 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR—22.2.2021

 

CNX-NIFTY

 Open—15074.80--High—15144.05—Low—14898.20---Close-14981.75 on 19.2.2021.

Support:14977.20/14753.55/14653.35/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.    

Resistance: 15024/15069/15102/15165/15228/15305/15325/15431.75/15471.       

 (Bold and underlined figures are most important)

Further to my last post for 10.2.2021 please note that the most important and critical point moving up was 15471 but it could not cross it and it made a high of 15431.75 on 16.2.2021 and started correcting and it is down for the fourth straight day today. Its most critical points for the year 2021 are 14024.85---13996.11 & 13981.75 and it is way above these points now and as long as it holds these points on the closing basis uptrend will remain intact. Its other key points are at 15324.50---14998.70---14888.80---14336.34---13562.48---12430.50(except for 12430.50 other figures can change). It is well below its first key point and shade below its second key point therefore it is in short correction mode now but if moves above 14998.70 and sustain on the closing basis that would indicate that the correction may be over and sustained close above 15025 may give a relief rally.  Please note that sustained close below 14998.70 & 14888.80 on the closing basis  can make this correction last longer which can last for 5-8 days or may be more, sustained break  below 14336.34 on the closing basis will push it into medium term correction mode and it can last even longer and most importantly sustained break below 13562.48 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.

As anticipated (see my post for 10.2.2021) finally it is in correction mode now but the overall long term technical setup is still good and if it move above 14998.70& 15025 and sustain on the closing basis then the ongoing correction may take a break or may be over and it could give a relief rally and if it moves above 15196 & 15325 and sustain on the closing basis then it can resume the up move again else the correction may continue for some time. It is important to mention here that once it moves above 15471 and sustain on the closing basis then it will open up a big upside for it, therefore 15471 will be a tough resistance point moving up for it which may please be noted. The long term bias is positive as of now. 

Moving down its critical support points at 14888.80---14803---14730.78---14696---14553---14514---14336.37---14297---14241---14024.85---13996.11---13981.75.

Moving up its critical resistance points at 15025---15069---15102---15165---15195---15228---15325---15431.75---15471---15868---15941---16625.

In view of the above observation long trade can be tried for a possible pullback move at this point of time but with extreme caution because it is in correction mode now. Traders can try long trade if it moves and maintain above 15069 for some time or can buy on decline near 14898 but not below it. Since it is in correction mode now short trade can also 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 good 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 15069 levels for some time with a stop loss of 15015.It could be a risky trade.

Or

Buy on decline near but not below 14898 with a stop loss of 14860.It could be a risky trade.

2. Sell on the rise near or within the range of 15175--15195 with a stop loss of 15230. It could be a risky trade but worth trying for intraday correction.

Or

Sell if it moves and sustain below 14898 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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