A TECHNICAL VIEW ON CNX-NIFTY FOR—23.2.2021

 

CNX-NIFTY

 Open—14999.05--High—15010.10—Low—14635.05---Close-14675.70 on 22.2.2021.

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

Resistance:14753.55/14823.07/14899/14977.20/15069/15102/15165/15257.10/15305/15325/15431.75/15471.   

 (Bold and underlined figures are most important)

The correction continued for the 5^th straight day and it plunged down by massive 306.05 points today which a very weak sign and it is likely to go down further in coming days with intermittent relief rallies from time to time. 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 1st key point and today it has decisively broken its 2^nd & 3^rd key points also therefore it has slipped into real short term correction mode and if it does not bounce back  at least above 14825 in next 2-3 trading session and sustain on the closing basis then the correction may last longer, 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.

It is in a short term correction mode now but can give relief rally any time and if it moves and sustain above 14825 (this figure will change and scale downward if it break the level of 14635.05) on the closing basis then only the relief rally can last some time and sustained close above 14900(figure may change) may give it some momentum else down move may continue. It is important to mention here that sustain close above 15120 & 15272.50(this figure may change) may resume the steady up move again. Please note that the short term technical setup has shaken a bit but the long setup is still o.k.

Moving down its critical support points at 14610---14553---14514---14336.37---14297---14241---14024.85---13996.11---13981.75.

Moving up its critical resistance points at 14696---14754---14825---14888.80---15025---15069---15102---15165---15195---15228---15325---15431.75---15471---15868---15941---16625.

It is in correction mode therefore long trade should be avoided in general but those who want to take advantage of the possible pullback or relief rally for them safe traders should avoid buy on decline and can only try long trade if it moves above 14825 and sustain for some time. However, for aggressive traders long trade can be tried on decline also but not below14610. Please note that buy on decline could be a risky proposition at this point of time. 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 still o.k. 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 14825 levels for some time with a stop loss of 14790.It could be a risky trade.

Or

Buy on decline near but not below 14610 with a stop loss of 14580. It is for aggressive traders and could be a highly risky trade.

2. Sell on the rise near 14900 with a stop loss of 14940. It could be a risky trade but worth trying for intraday correction.

Or

Sell if it moves and sustain below 14610 for some time with a stop loss of 14645. 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.