Wednesday, 4 August 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---5.8.2021

 

CNX-NIFTY

 Open—16195.25--High—16290.20—Low—16176.15---Close-16258.80 on 4.8.2021.

Support:16240/16223/16180/16074/16024/15962.25/15920/15915.65/15899.80/15885.75/15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.             

Resistance: -16320/16397/16583/16631/16690/17360/17503/19575/20390.           

 (Bold and underlined figures are most important)

It continued the up move today and closed with a gain of 128.05 points. It could further move up to 16320---16397---16584---16631---16690,   please note that the range of 16223—16397 would be a very tough resistance and it could correct in this range, so be vigilant and alert in this range. Please note that break below 16092(it may change) could push it into very short term correction mode, but as long as it holds 15962.25 level there is no major threat to the uptrend. Similarly moving down it will find support at 16235---16223---16135---16085---16074---16024---15962.25, but sustained break below 15962.25 may accelerate the fall.

It is important to mention here that its long term technical setup is good for the uptrend to continue. The short term outlook has improved drastically and one very important technical indicator has also become positive on the daily chart but on the weekly chart it is still negative which is concerning but if it continues it’s up move then it may also come into positive territory this weekend. So till it happens don’t be fearless but be cautious and careful in your long trades.

In view of the above observation, long trade can be tried if it moves above 16291 and maintain for some time or on decline at appropriate points or near 16180 and then near 15962 but not below it. 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 16291 and maintain for some time with a stop loss of 16240. It is for both the traders.

Or

Buy on decline at appropriate points or near 16180 and then near 15962 but not below it with a stop loss of 16140 &15900 respectively. It is for both the traders and could be a risky trade.

2. Sell on the rise near or within the range of 16370---16400 for some time with a stop loss of 16430. It could be a risky trade but worth trying for intraday gain.

Or

Sell near if it does not move above 16320 in first one and half hour of trade even intraday with a stop loss of 16345 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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