Thursday, 10 June 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR-11.6.2021

 

CNX-NIFTY

 Open—15692.10--High—15751.25—Low—15648.50---Close-15737.75 on 10.6.2021.

Support:15733.60/15629.65/15606.55/15471/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance:  15780/15800.45/15920/16223/16750/17250/17503/19575/20390.      

 (Bold and underlined figures are most important)

It bounced back sharply today but could not close above 15752 point which is essential to put it back on the steady up move track and to get it into strong up moment it has to close above 15780 and sustain on the closing basis.  Please note that if it does not close above 15752 at least on 11.6.2021 then chances are that it could sharply decline from here. Therefore till it closes above 15752 it is still into very short corrective mode and todays bounce back just a relief rally. The long term technical setup is still looking good and it could resume the up move again once the down move is over and as long as it holds 15471 & 15431.75 levels on the closing basis, then it could still 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 15635.35---15566.90---15471---15431.75---& 15411.27(this figure can change).  Please note that break below 15635.35 could trigger further fall for the day, sustained break below 15566 could accelerate the fall further, sustained break below 15471 on the closing basis will signal further weakness, sustained break below 15431.75 will indicate extreme weakness and sustained break 15411.27(this figure can change), 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.  I still feel that top may be in place for the time being till it moves above its recent all-time high of 15800.45 made on 9.6.2021 and down move may extend, so it is strongly suggested to avoid long trade till it moves above 15800.45 and sustain on the closing basis. However those who wish to take a chance can try long trade as long as it holds 15471 & 15431.75. The long term bias is positive as of now but the very short term outlook is weak.

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 only be tried if it closes above 15752 and avoid buy on decline for sure. However aggressive traders can try long trade if it moves above 15752 and maintain for some time or can buy on decline at appropriate points but not below 15635. Please note that buying on decline below 15635 could be a risky trade because if it moves and sustain below it for longer time during the day then it could further correct sharply. Since it has not yet crossed some of its critical averages and very short correction is on till it closes above 15752, 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. It is better to avoid long trade till it closes above 15752.

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. It is for the aggressive traders and could be a highly risky trade.   

Or

Buy if it moves above 15752 and maintain for some time with a stop loss of 15710. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 15790---15810 with a stop loss of 15830. It could be a highly risky trade.

Or

Sell if it moves below 15725 and maintain for some time with a stop loss of 15760. 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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