CNX-NIFTY
Open—15773.90--High—15778.80—Low—15680---Close-15740.10
on 8.6.2021.
Support:15733.60/15629.65/15606.55/15471/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: 15780/15920/16223/16750/17250/17503/19575/20390.
(Bold and underlined
figures are most important)
It mildly corrected today and closed
with a meager loss of 11.55 points. The
technical setup is looking good for the continuation of the up move but off
course with intermittent down correction and as long as it sustains above15471 & 15431.75 on the closing
basis, then it could scale up to 15780---15920---16223---16750---17250---17503---19575---20390
levels, but please note that it
could end the up rally for good at any of these points or earlier also or may
correct at any of these points and then may resume the rally again, both the
possibilities are there which may be kept in mind. Similarly
moving down its critical support points are at 15670.25---15471---15431.75---& 15394.73(this
figure can change), sustained break below 15670.25 will give a hint that
it could fall further, sustained break below 15471 on the closing basis will
signal further weakness, sustained break below 15431.75 will confirm the
weakness and sustained break 15394.73(this figure can change), will push it
into corrective mode and may threaten the uptrend also, which may please be
noted. Moving down other critical support levels will be at 15273---15257---15176---15111---15084---14977---14906---14884.
It is therefore strongly suggested to be
alert in long trade below 15670.25
and avoid long trade below 15471 and
below 15431.75 for sure. The bias is
positive as of now but looks slightly dicey at this point of time as it came
near its first critical resistance point of 15780 in last two days but failed to cross and if it does not move
above it in next 2-3 days and
sustain on the closing basis then it could correct from here.
It is
important to mention here that technically this on-going uptrend is showing enough
strength and looking good for the continuation of the up move but this up rally
is not in sync with the fundamentals and you are well aware that it is the
fundamentals which eventually hold the Priceline. Therefore this on-going up
rally may deceive you at any point of time, so be alert and careful in long
trade henceforth.
In view of the above observation for
safe traders long trade can be tried if it moves above 15780 and maintain for
some time or can be tried on decline near 15670
but not below it. However aggressive traders can try long trade if it moves
above 15752 and maintain for some
time or on decline at appropriate points but not below 15471. Please note that buying on decline below 15670 could be a risky trade because if
it moves and sustain below it for longer time during the day then it could
correct sharply. Since it has not yet crossed some of its critical averages, so short
trade can also be tried after reasonable rise or can be tried on the price
breakdown for taking advantage of the corrective move.
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 at appropriate points with self defined stop
losses or near 15471 or near 15431 but not below it with a stop loss of 15420. It
is for the aggressive traders and could be a highly risky trade.
Or
Buy on decline near 15670 but not below it with a stop loss of
15650. It is for both the traders.
Or
Buy if it moves above 15752 levels and maintain for some time
with a stop loss of 15720. It is for the aggressive trader,
Or
Buy if it moves above 15780 levels and maintain for some time
with a stop loss of 15720. It is for both the traders,
2. Sell on the rise near or
within the range of 15830---15850 with a stop loss of 15880. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it does not move
above 15780 in first hour and half of trade with a stop loss of 15795. It could
be a highly risky trade but worth trying.
Or
Sell if it moves below 15650
and maintain for some time with a stop loss of 15680. 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.
