Wednesday, 30 June 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-1.7.2021

 

CNX-NIFTY

 Open—15776.90--High—15839.10—Low—15708.75---Close-15721.50 on 30.6.2021.

Support:15698/15673.95//15629.65/15606.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance: -15780/18835.55/15877/15895.75/15901.60/ 15920/ 16024/16074/16180/16223/16631.        

 (Bold and underlined figures are most important)

It is still below its critical range of 15780---15920, it did move above 15780 intraday but could not sustain and finally closed at 15721.50 with a loss of 26.95 points which is a very weak sign. Furthermore it is very near to its major rising trend line which is placed at 15698(it will rise every day) for 1.7.2021 and near its recent bottom of 15673.95 on the bar chart, please note that sustained break below 15698 & 15673.95 on the closing basis could jeopardize the up move and may drag it down fast which may be kept in mind. However to resume the up move it has move and sustain above 15780 on the closing basis and eventually has to close above 15870  as of now then only it will have enhanced chances of moving up further, else it may move sideways to downward in coming days. It is important to mention here that its long term technical setup is still good as of now, therefore as long as it hold 15471 & 15431.75 on the closing basis there is no major threat to the uptrend. But the short term outlook seems slightly dicey and pointing that it could drift down if it does not move above 15780 & 15871 on the closing basis in next 3-4 trading sessions.

 It is important to mention here that technically this on-going uptrend is showing enough strength and looking good for the continuation of the up move but this up rally is not in sync with the fundamentals and you are well aware that it is the fundamentals which eventually hold the Priceline. Therefore this on-going up rally may deceive you at any point of time, so be alert and careful in long trade henceforth.   

In view of the above observation, for safe traders long trade can be tried once it closes above 15780 or 15871 else avoid. However aggressive trader can also try long trade if it moves above 15780 and maintain for some time or can try long trade if it holds 15698 & 15673.95 but not below it. Please note that long trade below 15673 could be a risky trade mind you because if it remains below it for a longer time during the day then it could move down sharply. Lastly long trade can be tried on sharp decline in the range of 15471---15431 but not below it with a stop loss of 15400. Since it has not yet crossed some of its critical long term averages, therefore short trade can also be tried after reasonable rise or can be tried on the price breakdown for taking advantage of the intraday or otherwise corrective 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 if it moves above 15780 and maintain for some time with a stop loss of 15720. It for the aggressive traders and could be a risky trade.

Or

Buy on decline near 15698 &15673 but not below it with a stop loss of 15650. It for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15870---15890 with a stop loss of 15930. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below15660 and maintain for some time with a stop loss of 15715. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 15780 in first one and half hour of trade with a stop loss of 15820.

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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