Friday, 30 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---2.8.2021

 

CNX-NIFTY

 Open—15800.60--High—15862.80—Low—15744.85---Close-15763.05 on 30.7.2021.

Support:15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance: - 15780/15835.55/15877/15885.75/15899.80/15915.65/15920/15962.25/ 16024/16074/16180/16223/16631/17360/17503/19575/20390.             

 (Bold and underlined figures are most important)

It moved in a positive territory through-out the day but in last hour of trade it plunged down sharply and closed near the low of the day with a small loss of 15.40 points. It is still into very short term correction mode, it is below its major key point of 15780 and also below its short and medium term moving averages these are the weak signs. Please note that it has to move above 15780 & 15841.57 on the closing basis to come out of present corrective mode and to give it some strength, but it has to move above 15873 and sustain on the closing basis then possibly it could retest its recent all-time high of 15962.25 and to reach here it will face stiff hurdles at 15900---15920---15952.35 and if it could cross 15962.25 and sustain then the upside target could be at 16024---16074---16109---16180---16200---16223---16583---16630. It is already into corrective mode now and if it sustains below 15780 on the closing basis then it could further drift down and could accelerate the fall. But if it holds 15632 on the closing basis then it could still make an effort to move up.  It is important to mention here that it has bed of supports in the range of 15673---15632---15606—15566---15471--15431, therefore till it holds this range there is no fear of sharp and consistent decline. Please note that it is moving in a broad range of 15962.25---15431 for quite some time now. Therefore it is suggested to play the range with the help of above mentioned in between support and resistance levels till either side breakout happens.

It is important to mention here that its long term technical setup is still  good for the uptrend to continue as of now , therefore as long as it hold 15471 & 15431.75 on the closing basis there is no major threat to the uptrend. The short term outlook weak, furthermore one very important technical indicator on the daily and weekly chart is still showing weakness and indicates that it could drag it down again if it does not improve in coming days. So watch out and be cautious and careful particularly in your long trades at this point of time.

In view of the above observation, for safe traders it is suggested to try long trade if it moves and closes above 15873 avoid buy on decline for now. However aggressive traders can  try long trade if it moves above 15800 and maintain for some time or can try buy on decline at appropriate points or near 15709 but not below it. Please note that buy on decline could be a risky affair for the day. Lastly and most importantly long trade should be attempted on sharp decline in the range of 15471---15431 but not below it with a strict stop loss of 15380. Since it has not yet crossed some of its critical long term averages and one technical indicator is still showing extreme weakness, 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 15800 and maintain for some time with a stop loss of 15730. It is for the aggressive traders and could be a highly risky trade.

Or

Buy on decline at appropriate points or near 15709 but not below it with a stop loss of 15660. It for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15900---15930 for some time with a stop loss of 15970. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15709 and maintain for some time with a stop loss of 15800. 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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