Commodities

Monday, 16 August 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---17.8.2021

 

CNX-NIFTY

 Open—16518.40--High—16589.40—Low—16480.75---Close-16563.05 on 16.8.2021.

Support: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: -16677/16688/16996/17415/17504/19575/20390.              

 (Bold and underlined figures are most important)

It consolidated and moved up today also and closed with a gain of 33.95 points. It looks good for the continuation of the up move and the upside target or resistance points could be 16688---16740---16821---16885---16996---17415---17504---19575---20390,   please note that moving up the most critical and tough resistance range would be 16753---16838—16900(figures will change every day) so please be careful in this range it may correct here before moving up further or it may top out in this range also. Similarly moving down its critical support points are at 16488.60---16465---16392---16335.50---16312(these figures may change) and please note that break below 16335.50(it may change) could push it into very short term correction mode and break below 16312 may weaken it further, but as long as it holds 15962.25 level there is no major threat to the long term uptrend. The other support points will be at 16223---16162---16133---16084---15962.25, 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 is also strong; furthermore one very important technical indicator has also become positive on the daily and weekly chart which is an extremely positive sign. Therefore further rise is ahead in coming days with intermittent corrections. It is a buy on dip market now but one should be cautious if it breaks 16312 and sustain on the closing basis. The bias is bullish as of now.

In view of the above observation, long trade can be tried if it hold  16543.60 for some time  or buy on decline at appropriate point or near 16465 but not below it, however aggressive traders can try long trade on decline at appropriate points or near 16312 but not below it. Please note that long trade below 16465 could be a risky affair for the day.  It is in strong up move but still below some of its very 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 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 holds 16543.60 for some time with a stop loss of 16500. It is for both the traders. It could be a risky trade.

Or

Buy on decline at appropriate points or near 16465 but not below it with a stop loss of 16425. It is for both the traders.

Or

Buy on decline at appropriate points or near 16312 but not below it with a stop loss of 16275. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 16640---16660 with a stop loss of 16700. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 16465 and maintain for some time with a stop loss of 16500. 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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