A TECHNICAL VIEW ON CNX-NIFTY FOR—12.3.2021

 

CNX-NIFTY

 Open—15202.15--High—15218.45—Low—15100.85---Close-15174.80on 10.3.2021.

Support:15165/15102/15069/14998.80/14977.20/14899/14862.10/14823.07/14753.55/14653.35/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.                                                                                                                     

Resistance:15176.50/15273.15/15305/15325/15369/15431.75/15471/15615/15694/15800/16028/16323/16991.50/17470.                                                                                                                

 (Bold and underlined figures are most important)

It moved above all its key points on 9.3.2021 and today further moved up and closed with a gain of 76.39 points which is a good sign and as long as it holds 15083 on the closing basis chances are that it can continue the up move with intermittent correction. 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 15083---14998.70---14888.80---14336.34---13562.48---12430.50(except for 12430.50 other figures can change). It has moved above all its key points now therefore it is out of correction mode now, which is positive sign. Please note that sustained break below 15083 & 14998.70 again can will push it into very short term correction mode which can last for 4-7 days or more, sustained close below 14888.80 can push it again into deep short term correction mode which can 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 moved above all its key points so it seems that correction may be over and if it holds 15083(figure can change) it is expected to move up and may pick, up momentum once it closes above 15239 and sustain. It is important to mention here that the further strong and sustainable up move can only be expected if it moves above 15431.75 & 15471 and sustain on the closing basis else with zigzag movement it may drift down again in coming days. Therefore moving up the critical range is between 15239---15431.75---15471(first two figures can change) please note that sustained close above 15471 will open the big upside range for it. Going up it will face resistance at 15176.50---15204---15239---15273.15---15369---15431.75---15471---15615---15694---15800---16028---16323. Similarly moving down it can find support at 15083---14998.80---14888.80---14753.55---14695.25---14635.05---14529.15---14467.75---14428---14336.34---14300---14258---14222.80---14024.85---13996.11---13981.75 levels.  Please note that the short term technical setup is improving now but the long term technical setup is still o.k. as of now.

In view of the above observation, safe traders can try long trade if it moves and maintain above 15239 for some time but avoid buy on decline for the day. However aggressive traders can try long trade if it moves and maintain 15239 for some time or can buy on decline but not below 15083. Since correction seems to be over therefore short trade in general should be avoided but can be tried after a reasonable rise in the appropriate range or on the price breakdown for taking advantage of the intraday down correction but with extreme alertness and caution because the long term technical setup is good for continuation of the up move 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 maintains above 15239 for some time with a stop loss of 15170.

Or

Buy on decline but not below 15083 with a stop loss of 15030. It is for aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range 15390---15430 with a stop loss of 15490. It could be a risky trade but worth trying for intraday correction.

Or

Sell if it moves and sustain below 15083 for some time with a stop loss of 15140. 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.