Commodities

Friday, 11 June 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-14.6.2021

 

CNX-NIFTY

 Open—15796.45--High—15835.55—Low—15749.80---Close-15799.35 on 11.6.2021.

Support:15780/15678/15629.65/15606.55/15566/15471/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance: 15835.55/15877/15920/ 15989/16085/16223/16750/17250/17503/19575/20390.        

 (Bold and underlined figures are most important)

 As it closed above its recent top of 15751.65 on the line chart and above its first critical resistance point of 15780 therefore it seems that very short correction may be over and it could resume the steady up move if it holds 15780 marks on the closing basis. The long term technical setup is looking good for the up move to continue off course with intermittent down correction and as long as it holds 15471 & 15431.75 levels on the closing basis, then it could still scale up to 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 15780---15635.35---15566.90---15471---15431.75.  Please note that break below 15780 on the closing basis would be an alert sign for the long trade, sustained break below 15635 may push it again in the very short corrective mode, sustained break below 15566 could accelerate the fall, sustained break below 15471 on the closing basis will signal extreme weakness and sustained break below 15431.75 will push it into deep short term corrective mode and may threaten the uptrend also, which may please be noted. Moving down other critical support levels will be at 15374---15273---15257---15176---15111---15084---14977---14906---14884. Today’s move indicates that the correction may be over but it has to be seen for the next 2-3 trading session, whether it sustains above 15780 or not, therefore long trade can be tried at appropriate points but with extreme caution and care at this point of time. The long term outlook is positive as of now.

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 long trade can be tried if it moves above 15836 and maintain for some time or can buy on decline at appropriate points or near 15635 but not below it. Since it has not yet crossed some of its critical averages, therefore 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 15635 but not below it with a stop loss of 15580.

Or

Buy if it moves above 15836 and maintain for some time with a stop loss of 15775. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 15880---15900 with a stop loss of 15930. It could be a highly risky trade.

Or

Sell if it does not move above 15836 in first hour and half trade with a stop loss of 15860. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15749 and maintain for some time with a stop loss of 15810. 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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