Saturday, 22 May 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-24.5.2021

 

CNX-NIFTY

 Open—14987.80--High—15190—Low—14985.85---Close-15175.30 on 21.5.2021.

Support:15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance:15176.50/15257.10/15273.15/15336.30/15431.75/15471.  

 (Bold and underlined figures are most important)

Further to my last post for 6.5.2021 it did not violate the mentioned important support range (see my post for 6.5.2021) therefore after moving in a range for few days it has given upside breakout from the downtrend line today which is a positive sign but it closed shade below its most important and critical point of 15176.50 which is slightly concerning and if it fails to cross this mark and sustain then this up may end here, which may please be noted. However if it moves above 15176.50 and sustain on the closing basis then it can retest its all-time high of 15431.75 or may go beyond in coming days but moving up it will face stiff resistance at 15257---15273---15336. It is important to mention here that if it moves above 15471 and sustain on the closing basis then it will open up a very big upside which may be kept in mind. Similarly moving down its good support levels are 15070—15010---14945---14884.90(first two points figure will change every day) for the day. Please note that break below 15070 will be an alert sign for long trade and exit long trade if it moves below 15010 and sustain for some time. Kindly note that some technical indicators on the weekly chart are still weak and it is critically poised at this point of time, so be alert and vigilant particularly in the long trade. The bias is up as of now.

In view of the above observation for safe trader’s long trade can only be tried if moves above 15471 and sustain on the closing basis therefore a big no for long trade at this point of time. However aggressive traders can try long trade if it moves above 15190 and sustain for some time or can buy on decline at appropriate points but not below 15070. Please note that long trade could be a risky affair at this juncture. Since it is near its make or break zone therefore short trade can also be tried after 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 at appropriate points with self defined short stop loss or near 15070 but not below it with a stop loss of 15000. It is for aggressive traders and could be a risky trade.   

Or

Buy if it moves above 15190 and maintain for some time with a stop loss of 15160.

2. Sell on the rise near or within the range of 15275---15300 with a stop loss of 15340. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 15190 in first hour of trade with a stop loss of 15230. 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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