Wednesday, 28 April 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-29.4.2021

 

CNX-NIFTY

 Open—14710.50--High—14890.25—Low—14694.95---Close-14864.55 on 28.4.2021.

Support:14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance:14883.20/14984.15/15051.60/15176.50/15257.10/15273.15/15336.30/15431.75/15471.         

 (Bold and underlined figures are most important)

It continued the upsurge for the 3rd strait day and closed with a robust gain of 211.50 points. Please note that it is still into deep short term correction mode but it is improving on the technical chart as it is well above its short ,medium and long term averages and  above it long term rising trend-line also and today it has given upside breakout from its short down trend-line all these developments are hugely positive sign for the continuation of the up move. Its short term down trend-line and major rising trend-line is placed at 14727(this figure will decrease every day) & 14620(this figure will increase every day) respectively and it will act as a strong support for it for the day. Please get alert in long trade below 14727 and exit trade if it indicates to close below 14620. It is important to mention here that its major downtrend line is placed at 15185(this figure will decrease every day) for the day and the way it is exhibiting strength it is very likely at this point of time that it may give an upside breakout  from this line in coming days and if it  does and sustain above  it then it may head for a big rise which may please be noted. Looking at the current technical setup further rise seems quite possible  from here as of now but intermittent down move also may happen. I would like to give a word of caution here that is has been vertically rising for the last three days ,so be alert also, it may have a vertical fall too because weekly technical indicators are still indicating weakness. So be careful in the long trade at this juncture.

Critical Support points are at :--14727---14620---14588---14454.

Critical Resistance points are at :--14943---15130---15176---15185.

Kindly note that the on-going up move is a pullback rally and it may exhaust at any of these points  or earlier also but the way it is showing strength and if it continues like this for few days then it could resume the strong up momentum again provided it clears the hurdle mentioned above . Please note that from here bias seems moderately positive as of now.

In view of the above observation  for safe traders long trade can be tried on decline  at appropriate points or near 14727 but not below it or can buy if it moves above 14891 and sustain for some time. However aggressive traders can buy on decline near 14620 but not below it but this could be a risky trade mind you. Since it is still into deep corrective mode  therefore short trade can also be tried on the reasonable rise  or can be tried on the price breakdown for taking advantage of the down move

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(Suggested)

1. Buy on decline at appropriate points or near 14727 but not below it with a stop loss of 14680. It is for safe  and aggressive traders both.   

Or

Buy if it moves above 14891 and maintain for some time with a stop loss of 14850.

Or

Buy on decline at appropriate points or near 14620 but not below it with a stop loss of 14590. It is for aggressive traders and could be a risky trade.   

2. Sell on the rise near or within the range of 15000---15050 with a stop loss of 15080. It could be a risky trade but worth trying for intraday gain.

Sell if it maintains below 14590 for some time with a stop loss of 14640. It could be a risky trade but worth trying for intraday gain.

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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