Thursday, 4 March 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR—5.3.2021

 

CNX-NIFTY

 Open—15026.75--High—15202.35—Low—14980.20---Close-15080.75 on 4.3.2021.

Support: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:15102/15165/15273.15/15305/15325/15369/15431.75/15471/15615/15694/15800/16028/16323/16991.50/17470.                                                                                                                

 (Bold and underlined figures are most important)

After yesterdays robust up move it lost steam today and exhibited wild swing both ways and finally ended the day with a loss of 164.85 points. Please note that this kind of volatility is not good for a steady up move. 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 closed shade below its 1st key points and if sustain below it then it could be very short term correction again and it could last for 3-4 days. Please note that sustained close below 14998.70 &14888.80 can push it again in the 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 is decisively below its important point of 15239 and shade below its 1st key point of 15083 today and if it does not bounce above these points in next 2-3 trading sessions then chances are that it can slip into correction mode again and this time it could be strong in intensity.  Going up the critical resistance points are at 15083---15176.50---15204---15239---15273.15---15369---15431.75---15471---15615---15694---15800---16028---16323. 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 in coming days.   Similarly moving down it can find support at 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 is getting jolt from time to time but the long term setup is still o.k.

In view of the above observation for safe traders it is suggested to avoid long trade till it closes above 15239 and sustain on the closing basis. However aggressive traders can try long trade if it moves and maintain above 15115 or on decline but not below 14998.  Since it is not giving clear direction therefore 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 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 maintains above 15115 levels for some time with a stop loss of 15070. It is for aggressive traders and could be a risky trade.

Or

Buy on decline but not below 14998 with a stop loss of 14970. It is for aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range 15240---15273 with a stop loss of 15310. It could be a risky trade but worth trying for intraday correction.

Or

Sell if it moves and sustain below 14980 for some time with a stop loss of 15020. 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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