Tuesday, 6 July 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---7.7.2021

 

CNX-NIFTY

 Open—15813.75--High—15914.20—Low—15801---Close-15818.25 on 6.7.2021.

Support:15780/15755.05/15673.95//15629.65/15606.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.                                                                                                                                                           

Resistance: -18835.55/15877/15895.75/15915.65/ 15920/ 16024/16074/16180/16223/16631.       

 (Bold and underlined figures are most important)

It had wild move today it went near its all-time high of 15915.65 but could not cross it and in the late afternoon started moving down and finally closed near the low of the day with a meager loss of 16.10 points. However, it is still within its critical range of 15780---15920. But it has made lower top & bottom on the line chart and most importantly it has made quadruple top in the range of 15895.75---15915.65 on the bar chart, so this range is very tough resistance now, therefore for smooth up move it has to move above 15920 and sustain on the closing basis then it could continue the up move and possibly hit the upside target of 16024---16074---16180---16223 else it may drift down.  Similarly going down it will find critical support at 15780---15700(it will change every day) ---15635.95---15566---15450. Please note that sustained break below 15780 will push it into very short correction mode, sustained break below 15700 will weaken it further and sustained break below 15635.95 could accelerate the fall. 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 seems dicey as of now.

In view of the above observation, for safe trader’s long trade can be tried once it closes above 15870 else avoid. However aggressive trader can try long trade if it moves above 15840 and maintain for some time or can try long on decline if it holds 15780 but not below it. Please note that long trade on decline could be a risky affair for the day. Lastly long trade can also be tried 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 moves above 15840 and maintain for some time with a stop loss of 15770. It for the aggressive traders and could be a risky trade.

Or

Buy on decline if it holds 15780 but not below it with a stop loss of 15750. It for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 15880---15920 with a stop loss of 15950. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below15750 and maintain for some time with a stop loss of 15820. 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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