Tuesday, 31 August 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---1.9.2021

 

CNX-NIFTY

 Open—16947.50--High—17153.50—Low—16915.85---Close-17132.20 on 31.8.2021.

Support:16996/16903/16826/16790/16701.85/16701.85/16688/16677/16376.05/16359.25/16240/16223/16180/16162.55/16074/16024/15962.25/15920/15915.65/15899.80/15885.75/15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75.                                                                                                                                                           

Resistance: -17229/17415/17504/17756/19575/20390.                         

 (Bold and underlined figures are most important)

It continued it’s robust up move today also and hit a new all-time high of 17153.50 and closed near the high of the day with a gain of 201.15 points. It is in strong uptrend and exhibiting great strength, but please note that the gap it created on 30.8.2021 is still there and if it makes an effort to fill this gap in next 2-3 days which is technically possible then it could come down to 16722 and if it does not fill this gap in the stipulated time then chances of filling it will fade out for now. Furthermore it has been moving up strait for the last 7 days, therefore there is a strong possibility of it correcting any time soon, so be watchful.  Moving down its critical support points would be at 17064---17014---16970---16903---16766(figures may change) break below 17064 could be an alert point for long trade, break below 17014 can push it into very short term correction mode, sustained break below 16970 & 16903 will weaken it further and break below 16766 will push it into deep short term correction mode. Since it has decisively crossed and closed above it most critical point of 17064(figure will change every day) and if it sustains above it on the closing basis then it could be heading for the upside target of 17229---17415---17504---17756---19575---20390.

It is important to mention here that its long term technical setup is good for the uptrend to continue. The short term technical outlook is also very strong as of now; therefore further rise is expected to continue off course with in between corrective move from time to time and provided it holds its critical support points mentioned above. The bias is hugely positive as of now but caution should be exercised in long trade with every rise in it.

In view of the above observation, long trade can be tried if it moves above 17154 and maintain for some time or buy on decline at appropriate points or near 17064 but not below it for safe traders. However, aggressive traders can also try long trade on decline at appropriate points or near 16920 but not below it. It is in strong up move but intraday correction will always happen, therefore short trade can also be tried after reasonable rise or can be tried on the price breakdown for taking advantage of the intraday gains.

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 17154 and maintain for some time with a stop loss of 17120. It is for both the traders. It could be a risky trade.

Or

Buy on decline near 17064 levels but not below it with a stop loss of 16985. It is for both the traders.

Or

Buy on decline at appropriate points or near 16920 but not below it with a stop loss of 16880. It is for the aggressive traders. It could be a risky trade.

2. Sell on the rise near or within the range of 17230---17250 with a stop loss of 17280. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 16903 and maintain for some with a stop loss of 16955. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 17154 in first one and half hour of trade even intraday with a stop loss of 17185 It could be a highly 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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