Commodities

Tuesday, 7 September 2021

A TECHNICAL VIEW ON CNX-NIFTY FOR---7.9.2021

 

CNX-NIFTY

 Open—17399.35--High—17429.55—Low—17345.55---Close-17377.80 on 6.9.2021.

Support:17340.10/17229/16996/16903/16826/16790/16701.85/16701.85/16688/16677/16376.05/16359.25/16240/16223/16180/16162.55/16074/16024/15962.25/15920/15915.65/15899.80/15885.75/15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75.                                                                                                                                                           

Resistance: -17415/17430/17504/17756/19575/20390.                         

 (Bold and underlined figures are most important)

It continued the up move today and made new all-time high of 17429.55 and closed with a gain of 54.20 points. It is in strong uptrend and exhibiting strength and the on-going up move is expected to continue off course with intermittent correction and provided it holds its key support points of 17225---17180---17157---17130---16977(figures may change) on the down move, break below 17225 can push it into very short term correction mode, sustained break below 17180---17156---&17130 will weaken it further and break below 16977 will push it into deep short term correction mode and may accelerate the fall. Moving up its potential target or resistance points would be at 17415---17430---17465---17504---17756---19575---20390. Please note that 17465(figure will change every day) will be the key resistance point for the day and if it does not cross this point, it may correct.

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 very strong as of now; therefore further rise is expected to continue off course with in between corrective move from time to time and provided it holds its critical support points mentioned above. The bias is hugely positive as of now but caution should be exercised in long trade with every rise in it.

In view of the above observation,  long trade can be tried if it holds 17341  for some time or on decline  at appropriate points or near 17225 and not below it. However, aggressive traders can also try long trade on decline at appropriate points or near 17157 but not below it. It is suggested to avoid long trade near 17455—17465 range. It is in strong up move but intraday correction will always happen, 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 17341 on the downside for some time with a stop loss of 17290. It is for both the traders.

Or

Buy on decline at appropriate points or near 17225 but not below it with a stop loss of 17200. It is for both the traders.

Or

Buy on decline at appropriate points or near 17157 but not below it with a stop loss of 17100. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 17450---17465 with a stop loss of 17500. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17225 and maintain for some with a stop loss of 17265. 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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