A TECHNICAL VIEW ON CNX-NIFTY FOR---6.12.2021

 

CNX-NIFTY

 Open—17424.90--High—17489.80—Low—17180.80---Close-17196.70 on 3.12.2021.

Support:17055/16782.40/16701.85/16565/16376.05/16349.45/16162.55/15962.25---15895.75/15635.95/15632.75/15578.55/15513.45/15450.90.                                                           

Resistance: -17216.10/17254.20/17326.10/17436.50/17452.90/17613.15/17757.95/17792.95/17798.20/17884.60/17947.65/17968.50/18012.20/18041.95/18112.60/18342.05/18604.50.                                                                                                               

 (Bold and underlined figures are most important)

It opened on a positive note and went up further but could not sustain at the upper level and slipped down to close with a loss of 204.95 points. As anticipated it failed to carry on yesterdays price momentum and slipped below its medium term correction threshold point of 17312.82 and below other critical point of 17323(figure can change) except for its pullback important threshold point of 17185, which is a very indication anyway and if it breaks this mark and sustain then chances of pullback up move may be over and it may resume the down move. Therefore moving down further its other important support points are at 17055---16880---16701---16565.60---16376---16028(figure may change). The long term uptrend is still o.k. till it holds 16880(figure will change every day) sustained break below this mark will put the long term uptrend in potential danger. It is important to mention here that it has a very strong support in the range of 16900---16800,so till it breaks this range and sustain on the closing basis it may bounce back from this range but sustained break below this range may take it down sharply. The overall short term technical setup is weak; therefore bias is down as of now.

 Kindly note that moving up it will face stiff resistance at 17312.82---17323---17454---17476---17543---17613---17673---17731---17893—17965---18022---18165---18232, it may correct at any of these points which may please be noted but if it moves above 17454 and sustain on the closing basis then it could possibly builds up some gain for the pullback rally.

 Please note that it could not carry on yesterdays price momentum  because  it is still below its short and medium term moving averages and also below some of its long term important parameters on the daily chart. Furthermore few important technical indicators are also weak on the daily and weekly chart which indicates that it could seek much lower levels in coming days/weeks with in between short relief rallies; therefore it seems that the fall may continue if the technical indicators don’t improve or it fails to exhibit sustained strong price pattern. The undertone as of now is tremendously weak.

It is important to mention here that pullback rallies are treacherous in nature and can end abruptly, it is therefore suggested that one should be extremely alert and cautious in the long trade initiated for pullback gains.

In view of the above, it again slipped into medium term correction mode toady retracing almost yesterday entire move, therefore for safe traders long trade should only be tried if it closes above 17454 and sustain else avoid. However aggressive traders can try long trade if it holds 17185 for some time or can try buy on decline in the range of 16900—16800 but not below it. I strongly caution here that long trade in a corrective mode could be a risky affair; therefore one should be extremely cautious and vigilant in the long trade at this point of time.  It is still in corrective mode; therefore short trade can be attempted on the rise at appropriate point or can be tried on the price breakdown for taking advantage of the down move 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 on decline near or within the range of 16900---16800 but not below it with a stop loss of 16750. It is for the aggressive traders and could be a highly risky trade.

Or

Buy if it holds 17185 for some time with a stop loss of 17140. It is for the aggressive traders and could be a risky trade.

 2. Sell on the rise near or within the range of 17350---17375 with a stop loss of 17410. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 17140 with a stop loss of 17210. It could be a 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.