A TECHNICAL VIEW ON CNX-NIFTY FOR—8.3.2021

 

CNX-NIFTY

 Open—14977.95--High—15092.35—Low—14862.10---Close-14938.10 on 5.3.2021.

Support:14899/14823.07/14753.55/14653.35/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.                                                                                                                                                           

Resistance:14977.20/14998.90/15069/15102/15165/15273.15/15305/15325/15369/15431.75/15471/15615/15694/15800/16028/16323/16991.50/17470.                                                                                                                

 (Bold and underlined figures are most important)

It is exhibiting high volatility so it can swing both ways in coming days, it is in corrective mode and continued the down move today and closed with a loss of 142.65 points. But it is still not out of the pullback mode as long as it holds 14695 level but it may pick up momentum only if it moves and sustain above 15083 & 15239 (figures can change) on the closing basis which may please be noted. 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 is running below its 1^st key point of 15083 and today it has gone below its 2^nd key point of 14998.70 therefore it is in very short term correction mode now and it could last for 4-7 days. Please note that sustained close below 14888.80 can push it again in the 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 has the long term technical strength , but it is in very short term correction mode now, but chances of pullback rally is still on as long as it holds 14695 on the closing basis but it may pick ,up momentum only if it moves and maintain above 15083 and then above 15239(figures can change) on the closing basis. 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. Therefore moving up the critical range is between 15239----15471(first two figures can change) and it seems tough to cross this range as of now. However going up it will face resistance at 14998.80--15083---15176.50---15204---15239---15273.15---15369---15431.75---15471---15615---15694---15800---16028---16323. Similarly moving down it can find support at 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 weak 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 either above 14998.80 or 15083 for some time or can buy on decline but not below 14888.80. It is important to mention here that it is in corrective and pullback mode both and pullback rallies are treacherous in nature and can end abruptly also as it happened few days back, so be alert and extremely cautious in the long trade initiated for pullback gains.    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 14998.80 or 15083 levels for some time with a stop loss of 14945 & 15030. It is for aggressive traders and could be a risky trade.

Or

Buy on decline but not below 14888 with a stop loss of 14840. It is for aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range 15100---15140 with a stop loss of 15180. It could be a risky trade but worth trying for intraday correction.

Or

Sell if it moves and sustain below 14860 for some time with a stop loss of 14940. 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.