Commodities

Monday, 5 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---6.7.2021

 

CNX-NIFTY

 Open—15793.40--High—15845.95—Low—15762.05---Close-15834.35 on 5.7.2021.

Support:15780/15755.05/15673.95//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: -18835.55/15877/15895.75/15915.65/ 15920/ 16024/16074/16180/16223/16631.       

 (Bold and underlined figures are most important)

It continued the up move today and bounced back within the range of 15780---15920 and closed with a gain of 112.15 points which is good sign. Furthermore it has bounced back above its major rising trend line and above its short term moving averages also which is an extremely positive indication for the up move to continue. But for the steady up move it has to remain above 15780 on the closing basis, then close above 15870 and eventually to cross 15920 mark and sustain then it could hit the upside target of 16024---16074---16180---16223. Please note that sustained break below 15780 could jeopardize the up move and it may resume the down move again and going down it may find good support at 15673.95---15635.95---15606.50---15566.40---15505.65---15450.40.  It is important to mention here that its long term technical setup is still good for the uptrend to continue , therefore as long as it hold 15471 & 15431.75 on the closing basis there is no major threat to the uptrend. The short term trend also seems OK but is has to be seen whether it is able to hold its critical level of 15780 in next 3-4 days or not.

In view of the above observation, for safe trader’s long trade can be tried once it closes above 15870 else avoid. However aggressive trader can try long trade if it moves above 15850 and maintain for some time or can try long on decline near 15780 but not below it. Please note that long trade on decline could be a risky affair for the day. 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 , 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 15850 and maintain for some time with a stop loss of 15810. 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 for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15900---15920 with a stop loss of 15950. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below15750 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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