Commodities

Wednesday, 3 March 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR—4.3.2021

 

CNX-NIFTY

 Open—15064.40--High—15273.15—Low—14995.80---Close-15245.60 on 3.3.2021.

Support:15165/15102/15069/14998.90/14977.20/14899/14823.07/14753.55/14653.35/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.                                                                                                                                                           

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

 (Bold and underlined figures are most important)

It gave a robust up move today and closed above its important point of 15239(see my post for 3.3.2021) therefore if it maintains above this mark on the closing basis then it is likely to continue the up move with an 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 14998.70---14888.80---14336.34---13562.48---12430.50(except for 12430.50 other figures can change). It has decisively crossed all the key points again which is a very good sign. Please note that sustained close below 14998.70 &14888.80 can push it again in the short term correction mode,  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 seems that it has come out of correction and if it holds 15239 level on the closing basis then it is likely to retest its all-time high of 15431.75 or can go beyond also, furthermore if it moves above 15471 and sustain on the closing basis then it will open up a very big upside, but if it moves below 15083 (this figure can change upward) and sustain on the closing basis then it can slip into very short term correction again. Going up the critical resistance points are at 15369---15431.75---15471---15615---15694---15800---16028---16323.  Similarly moving down it can find support at 15239---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---13981.75levels.  Please note that the short term technical setup has improved and the long term setup is still o.k.

In view of the above observation long trade can be tried if it maintains above 15239 or buy on decline can also be tried but not below 15083.  Since it has come out of correction 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 good 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 maintains above 15239 levels for some time with a stop loss of 15170.

Or

Buy on decline but not below 15083 with a stop loss of 14980.

2. Sell on the rise near or within the range 15470---15500 with a stop loss of 15530. 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 15125. 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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