Commodities

Monday, 28 June 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-29.6.2021

 

CNX-NIFTY

 Open—15915.35--High—15915.65—Low—15792.15---Close-15814.70 on 28.6.2021.

Support:18835.55/15780/15673.95//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: -15877/15895.75/15901.60/ 15920/ 16024/16074/16180/16223/16631.           

 (Bold and underlined figures are most important)

It opened with an up gap but could not sustain at the upper levels and slipped down to end the day near low of the day and with a loss of 45.65 points. Its present range is between 15780---15920 and break below 15780 on the closing basis could be an alert sign and  break below 15760 on the closing basis could weaken it and may drag it down, furthermore break below 15673 could push it into very short correction mode and may take it down sharply ,which may please be noted. Similarly if it moves above 15920 and sustain on the closing basis then the next upside target could be 16024---16074---16180---16223. It is important to mention here that its long term technical setup is  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. Kindly note that it is looking fine technically for the up move to continue, but with every rise in it the valuation of the constituent stocks are also getting stretched, so be careful and cautious in the long trade because there is a possibility that this up move may exhaust also at any of the above mentioned points or earlier also.

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 15871 or can try on if it holds 15780. However aggressive trader can also try long trade if it moves above 15871 and maintain for some time or can try on decline at appropriate points or near 15673 but not below it. Please note that long trade below 15780 &15760 could be a risky trade and below 15673 could be a highly risky trade mind you because if it moves and sustain 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 15380. 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 15871 and maintain for some time with a stop loss of 15840. It for the aggressive traders and could be a risky trade.

Or

Buy on decline near 15780 but not below it with a stop loss of 15740. It is for both the traders.

Or

Buy on decline at appropriate points or near 15673 but not below it with a stop loss of 15640. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15920---15930 with a stop loss of 15960. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15760 and maintain for some time with a stop loss of 15820.

Or

Sell if it moves below 15673 and maintain for some time with a stop loss of 15720.

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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