Wednesday, 18 August 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---20.8.2021

 

CNX-NIFTY

 Open—16691.95--High—16701.85—Low—16535.85---Close-16568.85 on 18.8.2021.

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: -16677/16688/16996/16701.85/17415/17504/19575/20390.     

 (Bold and underlined figures are most important)

It hit a new all-time high today and as expected it corrected too and closed with a loss of 45.75 points. But it looks good for the continuation of the up move and the upside target or resistance points could be 16574.60---16778---16688---16770---16857---16920---16996---17415---17504---19575---20390,   please note that moving up the most critical and tough resistance range would be 16783---16870—16935(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 or earlier also. Similarly moving down its critical support points are at 16486---16421.40---16412---16333(these figures may change). Please note that as it has closed shade below its threshold point of 16574.60 for getting into very short term correction, therefore technically it has slipped into correction, furthermore break below16421.40 (this figure may change) could push it into deep short term correction mode and break below 16333 may weaken it further, but as long as it holds 15962.25 levels 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 which may please be noted.

It is important to mention here that its long term technical setup is good for the uptrend to continue. Today’s down move was most normal correction and short term outlook is also good, 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 may be ahead in coming days with intermittent corrections. It is a buy on dip market now but one should be cautious if it breaks 16333 and sustain on the closing basis.

In view of the above observation, long trade can be tried if it moves above  16615 and maintain for some time or buy on decline at appropriate point or near 16486 but not below it, however aggressive traders can try long trade on decline at appropriate points or near 16333 but not below it. Please note that long trade below 16486 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 moves above 16615 and maintain for some time with a stop loss of 16565. It is for both the traders. It could be a risky trade.

Or

Buy on decline at appropriate points or near 16486 but not below it with a stop loss of 16440. It is for both the traders. It could be a risky trade.

Or

Buy on decline at appropriate points or near 16333 but not below it with a stop loss of 16285. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 16660---16680 with a stop loss of 16710. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 16486 and maintain for some time with a stop loss of 16540. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 16615 in first one and half hour of trade even intraday with a stop loss of 16640. 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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