CNX-NIFTY
Open-10987.80—High-11042.60---Low—10874.80---Close—11023.25
on 30.8.2019
Support:11008.95/10987.45/10985.15/10941.20/10923.60/10901.60/10881.70/10862.55/10782.60/10774.70/10692.35/10637.15/10628.65/10583/10558—550/10534.55/10440.55/10419.80—417.80/10333.85/10198/10138.60/10004.55/9951.90.
Resistance: 11078/11108.30/11118.10/11147/11171.55/11181.45.
Critical Points: - 10862.55 & 10881.70(It has to remain
above this to indicate that hope of moving up is still alive else may head for
good fall, these figures are valid till 31-12-2019.)
Long Term Moving Average Range on daily
chart (these figures changes every day):- 11427---11150-
it is below this range which is a bad sign.
Long Term Moving Average Range on weekly
chart (these figures changes every week):-10581---465---325—054---9939---801---730---9600.
It is important to note that sustained break below 10581 would be an
indication for a further fall.
Important Range :-11171.55---11150---10881.70---10862.55---10581.
TECHNICAL OBSERVATION
Further to my last post it moved above its
critical point of 10862.55 & 10881.70 on 26.8.19. But it did break 10881.70
intraday and came closer to 10862.55 on 30.8.19 but eventually went up to close
at 11023.25. However it could not go beyond its long term moving average lower
band on the closing basis, which is at 11150 for 3.9.19(it changes every day)
is still a bad sign. Therefore as long it sustain above 10862.55 it could oscillate
in the range of 10862.55---11150----11171.55, only sustained break above 11150
& 11171.55 on the closing basis can take it further higher to the level of
11365 & 11430 and sustained break above 11430 may help it to resume the
uptrend, chances of going beyond 11365&11430 looks slim at this point of
time.
The technical indicators and overall chart
setup indicates that the down trend is likely to continue and it could test or
break the bottom of 10637.15 which it made on 23.8.19 after the ongoing
pullback rally is over, it could give potential indication of rally exhaustion
or completion if it closes below 10940. The trend is down but, since it is
trading in a range and showing wild swing during the day, so traders can take
both side trades, if they wish to taking help of the important range as
mentioned above. Please note that for long trades it is suggested to try on
decline but avoid long trade below 10881.70 and below 10862.55 for sure, stop
loss would be below 10780. Short trade can be tried on the rise in the range of
11150—11171.55 with a stop loss of above 11235.I once again reiterate that the
trend is down therefore it is suggested to avoid long trade because it could be
risky affair but if initiated it should be handled with extreme caution and
care.
Remark: - It is in
downtrend. But now the relief rally is on but the overall technical setup
indicates that as of now there is a strong possibility that it could break its
recent bottom of 10637.15 in coming days. Therefore long trade should be
avoided in general, but aggressive trader can try both side trades as suggested
above.
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 is of spot market.
