Wednesday, 14 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---15.7.2021

 

CNX-NIFTY

 Open—15808.70--High—15877.5—Low—15764.20---Close-15853.95 on 14.7.2021.

Support:15835.55/15780/15673.95/15635.95/15606.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

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

 (Bold and underlined figures are most important)

It continued the up move today and closed with a gain of 41.60 points. It is within its critical rage of 15780---15920 which is a positive sign. But one most important and critical technical indicator is showing weakness on the daily and weekly chart, which indicates that it, could drag it down in coming days. But most importantly 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 and it has been moving up for the last three days after hitting recent low of 15632 and now above its lower band of its critical range of 15780---15920. Please note that if it remains above 15780 on the closing basis then it will gain strength, but 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 improving but still lightly 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 for both long and short trade till break out happen. Please note that the upside breakout from 15920 should happen quickly may be in next 4-5 trading session at the most, but sooner the better and sustain else it will lose steam and may head downside.

In view of the above observation, for safe traders long trade can only be tried if it closes above 15920 and sustain avoid buy on decline now. However, aggressive trader can long trade if it moves above 15880 and maintain for some time or can buy on decline at appropriate points or near 15780 but not below it and then in the range of 15673----15632 but not below it. Buying on decline below 15780 could be a risky affair.  Please note that long trade below 15632 could be a very risky affair because if it remains below it for longer time during the day then fall may accelerate. Last but not the least long trade before the upside breakout from 15920 could be dicey and dangerous any way. 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 15880 for some time with a stop loss of 15840. It for the aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 15780 and then in the range of 15673---15632 but not below it with a stop loss of 15730 &15600 respectively. It for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15895---15920 with a stop loss of 15940. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15730 and maintain for some time with a stop loss of 15790. 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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