A TECHNICAL VIEW ON CNX-NIFTY FOR---19.7.2021

 

CNX-NIFTY

 Open—15958.35--High—15962.25—Low—15882.60---Close-15923.40 on 16.7.2021.

Support:15920/15915.65/15885.75/15877/15835.55/15780/15673.95/15635.95/15606.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                   

Resistance: - 15962.25/ 16024/16074/16180/16223/16631/17360/17503/19575/20390.     

 (Bold and underlined figures are most important)

It just managed  to hold its critical point of 15920 for the second day but not comfortably placed, please note that it has to maintains above it on the closing basis then it could move to the upside target points of 16024---16074---16180---16223 or may go beyond also in coming days/weeks. Moving down its critical support points would be at 15920---15780 and then very good support range of 15673---15606—15566---15471--15431, therefore till it holds this range there is no fear of sharp decline. Please note that break below 15920 would be an alert sign and break below 15780 could weaken it and could drag it down towards support points range. It is important to mention here that its long term technical setup is  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 looking dicey as of now because one very important technical indicator on the daily and weekly chart is showing weakness and if it does not improve fear of fall will always be there. So be extremely cautious in the long trade at this point of time.

In view of the above observation, long trade can be tried if it holds above 15920 or if it moves above 15965 and maintain for some time or on decline at appropriate points or near 15780 but not below it. Please note that long trade above 15965 could be a relatively safe bet.   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,  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 holds 15920 for some time with a stop loss of 15870. It for both the traders and could be a risky trade.

Or

Buy if it moves above 15965 and maintain for some time with a stop loss of 15910. It for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 15880 but not below it with a stop loss of 15860. It for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 15780 but not below it with a stop loss of 15760. It for both the traders and could be a risky trade.

2. Sell on the rise near or within the range of 16035---16075 with a stop loss of 16125. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 15965 in first one and half hour of trade with a stop loss of 15995. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15860 and maintain for some time with a stop loss of 15925. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15760 and maintain for some time with a stop loss of 15810. 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.