Monday, 12 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---13.7.2021

 

CNX-NIFTY

 Open—15766.80--High—15789.20—Low—15644.75---Close-15692.60 on 12.7.2021.

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

Resistance: -15780/18835.55/15877/15885.75---15915.65/ 15920/ 16024/16074/16180/16223/16631.     

 (Bold and underlined figures are most important)

It opened with an up gap and went further up but could not sustain at the higher level and moved down but closed with meager gain of 2.80 points. It is below its major rising trend-line; below all its short term moving averages and most importantly one critical technical indicator is showing weakness on the daily and weekly chart, therefore all together it is exhibiting short term weakness as of now, which could drag it down in coming days. But please note that it has bed of support in the range of 15673---15606—15566---15471--15431, therefore till it holds this range there is no fear of sharp decline and it may bounce back also. But moving up the range of 15780---15920 is very tough and critical and looks slightly difficult to cross at this point of time. However if it cross 15780 and sustain on the closing basis then it will gain some strength and for the steady and strong up momentum it has to move above 15920 and sustain on the closing basis then it could possibly hit the upside target points of 16024---16074---16180---16223 or may go beyond. 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 outlook is weak as of now. The above observation will hold till it gives either side breakout i.e. either above 15920 or below 15431. It is therefore suggested to trade the range of 15920---15431 at appropriate points both long and short trade till break out happen.

In view of the above observation, for safe trader’s long trade can only be tried once it closes above 15780 avoid buy on decline now. However aggressive trader can also try long trade if it  maintains above today’s close i.e. 15692.60 for some time or can try long on decline at appropriate points in the range of  15673----15566 but not below it. Please note that in a weak market long trade could be a risky affair and particularly buy on decline for the day mind you, so be cautious. 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 overall short term technical setup is indicating 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 maintains above 15693 for some time with a stop loss of 15630. It for the aggressive traders and could be a highly risky trade.

Or

Buy on decline at appropriate points in the range of 15673---15566 but not below it with a stop loss of 15540. It for the aggressive traders and could be a highly risky trade.

2. Sell if it does not move above 15780 in first one and half hour of trade with a stop loss of 15810. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15632 and maintain for some time with a stop loss of 15700. 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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