Commodities

Monday, 26 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---27.7.2021

 

CNX-NIFTY

 Open—15849.30--High—15893.35—Low—15797---Close-15824.45 on 26.7.2021.

Support:15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance: - 15835.55/15877/15885.75/15899.80/15915.65/15920/15962.25/ 16024/16074/16180/16223/16631/17360/17503/19575/20390.             

 (Bold and underlined figures are most important)

After two days of up move it corrected today and closed with a loss of 31.60 points. It slipped below its very short term correction mode threshold point of 15842 so technically it is in correction again, which is a weak sign, but it is reasonably above its major key point of 15780 and also above short and medium term moving averages which is positive sign. Please note that it has to move above 15841.57 & 15885.51 and sustain on the closing basis then it could retest its recent all-time high of 15962.25 and to reach here it will face hurdles at 15915.65---15920---15952.35 and if it could cross 15962.25 and sustain then the upside target could be at 16024---16074---16109---16180---16200---16223---16583---16630. Please note that it may take a breather or correct at any of these points or earlier and then may resume the up rally again, but if it sustains below 15841.57 on the closing basis then it could drift down and break below 15760 (this figure may change) could accelerate the fall. Therefore the important point moving down is 15760 and moving up is 15841.57 & 15885.51 as of now. It is needless to mention here that it has bed of supports in the range of 15673---15632---15606—15566---15471--15431, therefore till it holds this range there is no fear of sharp and consistent decline.

It is important to mention here that its long term technical setup is still  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 improved but still not out of woods; furthermore one very important technical indicator on the daily and weekly chart is still showing weakness and indicates that it could drag it down again if it does not improve in coming days. So watch out and be cautious and careful in your trades.

In view of the above observation, for safe traders it is suggested to try long trade if it moves above 15900 and maintain for some time avoid buy on decline for the day. However aggressive traders can also try long if it moves above 15860 and maintain for some time or can try buy on decline near 15780 but not below it. Please note that long trade below 15780 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 15380. Since it has not yet crossed some of its critical long term averages and one technical indicator is still showing extreme 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 moves above 15900 and maintain for some time with a stop loss of 15845. It is for both the traders.

Or

Buy if it moves above 15860 and maintain for some time with a stop loss of 15740. It is for the aggressive traders.

Or

Buy on decline at appropriate points or 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 if it moves below 15760 for some time with a stop loss of 15810. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 15900 in first one and half hour of trade with a stop loss of 15935. 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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