A BROAD TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---18.5.2020

CNX-NIFTY

 

Open-9182.40--High-9182.40—Low-9050—Close-9136.85 on 15.5.2020

 

Support:9116.50/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.

 

Resistance:9244/9290/9327.85/9390.31/9468.75/9685.55/9687.55.

 

 (Bold and underlined figures are most important)                                                                       

It exhibited huge volatility during the preceding week, it made a high of 9584.50 and made a low of 9043.95 and finally ended the week near the lower end at 9136.85, which is a weak sign.

It is in the downtrend but in between frantic up move upset the thought process and confuses you about the direction of the market. The trend is down for sure as of now and any up rally should be utilised for selling till it closes above its critical points of 9243.89---9327.85----9390.31 and sustain, therefore up move seems to be capped in the range of 9250----9450 on intraday basis as of now. Moving down it has the following support range.

1.9116.50---9090----9038-  it took support around 9038 couple of time ,therefore sustained break below 9038 may accelerate the fall.

2.8980---8967---8940---8909— sustained break below 8909 will trigger sharp fall.

3.8821---8801---8672- sustained break below 8672 will indicate that it could retest or break its bottom of 7511.10 made on 24.3.2020 in coming days/weeks.

In view of the above observation it is clear that the trend is down, but in between up rally cannot be ruled, therefore it is suggested to avoid long trade till it closes above the critical points mentioned above, however aggressive traders who wish to take advantage of the in between short up move may initiate trade with the help of support points and exit trade with the help of resistance points mentioned above. Please note that long trade could be a risky affair. So it is apt for now to adopt selling on the rise strategy or sell on the price breakdown.

TRADING STARTAGY      

1. Sell on the rise in the range of 9240---9327.85---9390.31 ---9450

    with a stop loss of above 9475. Kindly note that the self defined short      

    stop losses can be applied by the traders, but the authentic stop loss

    would be 9475 only.     

 Or

Sell below 9038 with a stop loss of above 9130.

Remark: - The long term trend is down. It showed extreme volatility during the week but headed down, thereby indicating weakness; therefore long trade should be avoided for now and be reviewed only if it closes above its critical points mentioned above. Only short trade should be attempted as suggested above. The long term 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 are of spot market.

 

Contact me for strategic guidance to enter and exit trade.