Friday, 2 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---5.7.2021

 

CNX-NIFTY

 Open—15705.85--High—15738.35—Low—15635.95---Close-15722.20 on 2.7.2021.

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: -15755.05/15780/18835.55/15877/15895.75/15901.60/ 15920/ 16024/16074/16180/16223/16631.    

 (Bold and underlined figures are most important)

It staged a short recovery today after 4 days of fall and ended the day with a gain of 42.20 points.  It is still below its critical range of 15780---15920. Furthermore it is below its major rising trend line, also broken its recent bottoms on the line chart yesterday, already below its short term moving average and most importantly some critical technical indicators are giving weak indication, therefore all together it is showing weakness and pointing that it could go down fast, if it does not bounce back sharply in a short period of time. However to resume the steady up move it has to move and sustain above 15780 on the closing basis, to bounce back above the trend line which is placed at 15830(it will move up every day) for 5.7.2021 and eventually has to close above 15870 as of now then only it will have enhanced chances of moving up further, else it may move sideways and drift down in coming days. Please note that break below 15673.95 and then below 15635.95 on the closing basis could accelerate the down move. 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.  But the short term outlook seems slightly dicey and pointing that it could drift down with intermittent relief rallies if it does not move above 15780 & 15871 on the closing basis in next 1-2 trading sessions or at least move above 15780 and sustain.

 In view of the above observation, for safe traders long trade can be tried once it closes above 15780 or 15871 else avoid. However aggressive trader can try long trade if it moves above 15760 and maintain for some time or can try long on decline near 15673.95 & 15635.95 but not below it. Please note that long trade below 15635.95 could be a risky affair mind you because if it remains below it for a longer time during the day then it could move down sharply, furthermore long trade in a weak market could be very risky thing to do anyway. Lastly long trade can be tried 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 at present overall short term technical indications are weak, 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 15760 and maintain for some time with a stop loss of 15720. It for the aggressive traders and could be a highly risky trade.

Or

Buy on decline near 15673.95 or 15635.95 but not below it with a stop loss of 15600. It for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15800---15830 with a stop loss of 15850. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below15673 and maintain for some time with a stop loss of 15725. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below15635 and maintain for some time with a stop loss of 15680. 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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