Commodities

Friday, 27 August 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---30.8.2021

 

CNX-NIFTY

 Open—16642.55--High—16722.05—Low—16565.20---Close-16705.20 on 27.8.2021.

Support: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: -16722.05/16790/16826/16903/17229/17415/17504/17756/19575/20390.       

 (Bold and underlined figures are most important)

It is exhibiting good strength and continued it’s up move today also and closed with a gain of 68.30 points. It could move up further from here as long as it holds its critical support points of 16640.40---16590---16523---16454---16436.80---16377(figures may change)  break below 16640.40 can push it into very short term correction mode, sustained break below 16590 will weaken it further and break below 16436.80 will push it into deep short term correction mode and sustained break below 16377(figure will change every day) on the closing basis may drag it down fast and may put the on-going up move in potential danger which may please be noted. Moving up the critical resistance points will be at 16701.85---16722.05---16790---16870---16962---17028(last four figures can change). It seems tough to cross this range as of now, however if it moves above 17028 and sustain on the closing basis then very strong up momentum may begin afresh.   

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 good as of now, therefore further rise may be ahead in coming days with intermittent corrections provided it holds 16640.40 and 16377(it can change) on the downside on the closing basis. The bias is positive as of now.

In view of the above observation, long trade can be tried if it moves above 16722 and maintain for some time or buy on decline near 16590 but not below it for safe traders. However, aggressive traders can also try long trade on decline at appropriate points or near 16450 and then near 16377 but not below it. It is in good up move but it will face stiff resistance moving up from here, 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 16722 and maintain for some time with a stop loss of 16680. It is for both the traders.

Or

Buy on decline near 16590 levels but not below it with a stop loss of 16550. It is for both the traders.

Or

Buy on decline at appropriate points or near 16450 but not below it with a stop loss of 16370. It is for the aggressive traders. It could be a highly risky trade.

2. Sell on the rise near or within the range of 16790---16825 with a stop loss of 16850. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 16550 and maintain for some with a stop loss of 16610. 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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