TECHNICAL VIEW ON CNX-NIFTY---9.3.2020

CNX-NIFTY

Open-10942.65--High-11035.10—Low-10827.40—Close-10979.55 on 6.3.2020

Support: 10945/10827.40/10782/10746.35/10670.25/10637.15/10583.65/10536.84/10489.75/10447.62/10440.55/10333.85/10138.60/10004.55.

Resistance:10995.32/11090.15/11108.30/11146.90/11171.55/11223/11250.20/11311.60/11322.11/11358.22/11393/11416/11433/11461/11490.75/11549.10/11589/11625.

 (Bold and underlined figures are most important)                                                                       

 As envisaged in my last post of 2.3.2020, it did came near to its crucial support point of 10995.20, it hit a low of 11036.25 and bounced back to hit a high of  11433 on 2.3.2020  but could not cross the possible rally exhaustion point of 11489(refer my post of 2.3.2020). It finally broke its most crucial support point range upper band of 10995.22—938(closing basis) on the last trading day of the week. It opened with a huge down gap and hit a low of 10827.40 and closed at 10979.50.  Please note that if it does not bounce back above 10995.22 and sustain on the closing basis then it is very likely that it could test or break its bottom of 10637.15 it made on 23.8.2019, chances of breaking the bottom looks very strong at this point of time in coming days/weeks.  

Please note that the down gap it created on 6.3.2020 is still there and if it makes an effort to fill the gap in next 3-4 days which is technically possible then it can come up to 11244.60 else this gap may not be filled now. Looking at the overall chart pattern it seems that the gap may not filled now.

The technical parameters are going from bad to worse therefore further fall looks very imminent. Since it is below its critical support point of 10995.22 so it has opened up the downside up to 10637.15 or below therefore the benchmark point as of now is 10995.22 and if it sustain below it then the next critical support points would be at 10637.15/10583.65/10536.84/10447.62 and sustained break below 10583.65 and then below 10447.62 could potentially take it down to 10000 mark or below also, which may please be noted.

The trend is down so it is expected that it will steadily move down but in between pullback rally would be there but it is suggested to avoid taking advantage of these rallies because it can end abruptly trapping you on the wrong foot. Therefore it would be better to adopt sell on the rise strategy till it gives visible indication of bottoming out. The possible sell point range could be between 10995.22---11175.05 so sell near and below 11175 or below 10995.22 with a stop loss of above 11250 and 11065 respectively. Please don’t forget to trail your stop loss in profitable trade to avoid losses.    

IMPORTANT NOTE: - Be alert in short trade above 10995.22 & 11175.05

 Remark: - The long term uptrend is potentially threatened and the technical parameters also are very weak, therefore it seems very likely that it may drift down in coming days/weeks. Therefore for safe traders it is suggested to avoid long trade completely till it gives visible sign of bottoming out. But the aggressive trader can try long call with the help of support and resistance point as mentioned above, but mind you that it could be a risky trade. The down move is on therefore sell on the rise strategy would be a better option as of now. The bias is hugely bearish.     

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 favourable  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.

Contact me for strategic guidance to enter and exit trade.