Tuesday, 29 June 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-30.6.2021

 

CNX-NIFTY

 Open—15807.50--High—15835.90—Low—15724.05---Close-15748.45 on 29.6.2021.

Support:/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 continued down move today and closed with a loss of 66.25 points. It gave downside break from its present range of 15780---15920 and is also below its next critical support of 15760 (it can change) which is a weak sign. Its most critical support is at 15673.95 and lastly and most importantly it is very near from its major rising trend line which is placed at 15660(it will scale up every day) for 30.6.2021. Please note that break below 15673.95 and finally below 15660 on the closing basis could jeopardize the up move and if it sustain below it then it can go down sharply. Please note that to resume the up move it has move and sustain above 15780 on the closing basis and eventually to close above 15870 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. 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 time soon.

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 if it moves above 15780 and maintain for some, avoid buy on decline. However aggressive trader can also try long trade on decline at appropriate points or near 15673 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 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 15780 and maintain for some time with a stop loss of 15720. It for both the traders and could be a risky trade.

Or

Buy on decline near 15673 but not below it with a stop loss of 15630. It for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15895---15920 with a stop loss of 15940. 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 15730. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 15836 in first one and half hour of trade with a stop loss of 15875.

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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.