Monday, 19 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---20.7.2021

 

CNX-NIFTY

 Open—15754.50--High—15836.90—Low—15707.50---Close-15752.40 on 19.7.2021.

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: - 15780/15835.55/15877/15885.75/15915.65/15920/15962.25/ 16024/16074/16180/16223/16631/17360/17503/19575/20390.             

 (Bold and underlined figures are most important)

It corrected sharply today and is now below its critical point of 15920 & 15780 , it is decisively below its short term moving averages also, which is a weak sign and if it does not bounce back above these points in next 2-3 trading sessions then it could further drift down. But going down 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 and consistent decline. However it has gotten into very short correction mode today and to get out of it has to move above 15842 else it will move down further and may complete correction at 15646---15571---15566—15553 at any of these points. Please note that break below 15673 could weaken it further and break below 15632 could accelerate the fall and could drag it down towards lower end of the support points range. It is important to mention here that its long term technical setup is  good for the uptrend to continue as of now , 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 has got a jolt today and gotten weak; furthermore 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 and it came into play today. So be extremely cautious in the long trade at this point of time.

In view of the above observation, since it has gotten into short correction mode, for safe traders it is suggested to avoid long trade till it gives visible indication of correction completion or closes above 15842. However aggressive traders can try long trade if it moves above 15840 and maintain for some time or can try buy on decline at appropriate points or near 15632 but not below it. Please note that long trade in a weak market could be a risky affair. 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 15370. 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 15840 and maintain for some time with a stop loss of 15780. It for the aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 15632 but not below it with a stop loss of 15590. It for the aggressive traders and could be a risky trade.

2. Sell if it does not move above15840 in first one and half hour of trader with a stop loss of 15855. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 15689 and maintain for some time with a stop loss of 15720. 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 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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