Commodities

Monday, 24 May 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-25.5.2021

 

CNX-NIFTY

 Open—15211.35--High—15256.25—Low—15145.45---Close-15197 on 24.5.2021.

Support:15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

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

 (Bold and underlined figures are most important)

It moved in a short range today and closed just few points above its most important and critical level of 15176.50. The technical setup is strong for the continuation of the up move, but please notes that the range of 15176.50---15471 is very tough range and it seems difficult to cross. However if it moves above 15471 and sustain on the closing basis then it will open an upside range of 16750---17250, similarly if it moves below 15176.50 and sustain on the closing basis then on-going up move may end and it may open moderate to big downside. So it is critically poised now, therefore it is important to mention here that some technical indicators on the weekly chart are pointing that it could turn weak in coming days, so one should be alert and vigilant particularly in the long trade at this point of time. 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 holds 15190 levels or can buy on decline at appropriate points but not below 15080. Please note that long trade could be a risky affair at this juncture particularly buying on decline. Since it is critical 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 15080 but not below it with a stop loss of 15040. It is for aggressive traders and could be a risky trade.   

Or

Buy if it holds 15190 levels with a stop loss of 15140. It is for aggressive traders and could be a risky trade.   

 

2. Sell on the rise near or within the range of 15280---15310 with a stop loss of 15350. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15140 and maintain for some time with a stop loss of 15200. 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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