Friday, 4 June 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-7.6.2021

 

CNX-NIFTY

 Open—15712.50--High—15733.50—Low—15622.35---Close-15670.25 on 4.6.2021.

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

Resistance: 15733.60/ 15780/15920/16223/16750/17250/17503/19575/20390.      

 (Bold and underlined figures are most important)

It mildly corrected today and closed with a small loss of 20.09 points. The technical setup is looking good for the continuation of the up move but off course with intermittent down correction and as long as it sustains above15471 & 15431.75 on the closing basis, then it could scale up to 15780---15920---16223---16750---17250---17503---19575---20390 levels, but please note that it could end the up rally for good at any of these points or earlier also or may correct at any of these points and then may resume the rally again, both the possibilities are there which may be kept in mind. Similarly moving down its critical support points are at 15574.85---15471---15431.75---& 15360.12(this figure can change), sustained break below 15574.85 will give a hint that it could fall further, sustained break below 15471 on the closing basis will signal further weakness in it, sustained break below 15431.75 will confirm the weakness and sustained break 15360.12(this figure can change), will push it into corrective mode and may threaten the uptrend also, which may please be noted. Moving down other critical support levels will be at 15273---15257---15176---15111---15084---14977---14906---14884.  It is therefore strongly suggested to be alert in long trade below 15574.85 and avoid long trade below 15471 and below 15431.75 for sure. The bias is positive as of now but looks slightly dicey may drift down also for the day.

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 if it moves above 15735 and maintain for some time or can be tried on decline near 15606 but not below it. However aggressive traders can try long trade if it moves above 15691 and maintain for some time or can try buy on decline at appropriate points but not below 15471. Please note that buying on decline below 15574 could be a risky trade because if it moves and sustain below it for longer time during the day then it could correct sharply. Since it has not yet crossed some of its critical averages, so short trade can also be tried after reasonable rise or can be tried on the price breakdown for taking advantage of the 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 on decline at appropriate points with self defined stop losses or near 15471 or near 15431 but not below it with a stop loss of 15420. It is for the aggressive traders and could be a highly risky trade.   

Or

Buy if it moves above 15735 and maintain for some time with a stop loss of 15665. It is for the safe traders.

Or

Buy if it moves above 15691 and maintain for some time with a stop loss of 15650. It is for the aggressive traders.

Or

Buy on decline near 15606 but not below it with a stop loss of 15560. It is for both the traders.

2. Sell on the rise near or within the range of 15800---15820 with a stop loss of 15850. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 15735 in first one hour of trade with a stop loss of 15760. It could be a highly risky trade but worth trying.

Or

Sell if it moves below 15560 and maintain for some time with a stop loss of 15620. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15606 and maintain for some time with a stop loss of 15640. It could be a highly 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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