Tuesday, 10 August 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---10.8.2021

 

CNX-NIFTY

 Open—16281.35--High—16320.75—Low—16179.05---Close-16258.25 on 9.8.2021.

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.                                                                                                                                                           

Resistance: -16345/16423/16583/16631/16690/17360/17503/19575/20390.           

 (Bold and underlined figures are most important)

After one day correction it bounced back today and closed with a meager gain of 20.05 points. It is still good to move up and the upside target or resistance points would be at 16264---16345---16423---16584---16631---16690---16750,   please note that moving up the range of 16264—16345---16423 would be a very tough resistance range and it could correct in this range and it did corrected within the range intraday today also, therefore it seems that it will be tough to cross this range, so be vigilant and alert in this range. Please note that break below 16152(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 16223---16152---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 last weekend which is concerning but if it continues it’s up move then it may also come into positive territory this weekend and if does not then it may start drifting down. So till it comes into positive mode it is suggested that not to be fearless but be cautious and careful in your long trades.

In view of the above observation, long trade can be tried if it holds 16238 for some time or if it moves above 16295 and maintain for some time. It is suggested to avoid buying below 16238 for the day. However aggressive traders can try buy on decline at appropriate points or near 16152 but not below it. It is in strong up move but even then 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 16295 and maintain for some time with a stop loss of 16240. It is for both the traders.

Or

Buy if it holds 16238 levels for some time with a stop loss of 16190. It is for both the traders.

Or

Buy on decline at appropriate points or near 16152 but not below it with a stop loss of 16100. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 16340---16350 for some time with a stop loss of 16375. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 16238 and maintain for some time with a stop loss of 16275. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 16150 and maintain for some time with a stop loss of 16200. 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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