A BROAD TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---1.6.2020

CNX-NIFTY

 

Open-9422.20--High-9598.85—Low-9376.90—Close-9580.30 on 29.5.2020

 Support:9475/9390.31/9327.85/9299/9220/9158/9141/9131/9116/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555

 

Resistance:9634/9685.55/9700/9889.05/9944.40/9951/9970.80/10004.45/10033.35/10137.85/10178.95/10276.20/10333.85/10417.80/10490.95/10551.20.

(Bold and underlined figures are most important)                                                              

It opened on a negative note at 9422.20 and made a low of 9376.90 and then moved in a short range for some time and then it consolidated and started moving up and made a high of 9598.85 and ended the day near the high at 9580.30 with a gain of 90.20 points. It exhibited huge volatility during the week but finally ended the week on a firm note which indicates strength for further up move.

Technically it is showing good strength and since it has been closing above its critical point of 9390.31 for last two days, so it has opened up the upside up to 9970 provided it sustain above 9390.31 on the closing basis, on the way up it will face stiff resistance at 9634/9688—9700/9889.05/9944.40. Please note that if it moves above 9970.50 and sustain on the closing basis then it will open the upside up to 10550.

The technical parameters in short term indicates that the ongoing up move may last for few days, so long trade can be tried on decline at appropriate points but not below 9390.31 & 9327.85 for sure, but not to forget one thing that this is an up move within the long term downtrend and it may fizzle out without giving proper signal and may trap the traders unaware which may please be noted. It is therefore suggested to be extra vigilant and cautious in the long trade. Please note that the instinctive short trade should be avoided but short trade should be attempted at the specific points because this rally may end abruptly and it has happened in the past also.  

TRADING STRATEGY 

1. Buy on decline at appropriate points but not below 9390.31 with a stop loss of 9280.

Or

    Buy if it maintain above 9600 with a stop loss of 9460.

 

2. Can try selling at critical range of 9688---9750 with a stop loss of 9800.

Or

 Sell if it maintains below 9390.31 with a stop loss of 9490.

Remark: - The long term trend is down. Short term outlook is up and the pullback rally is on therefore long trade can be tried as suggested above with extreme caution and care. Short trade should also be attempted as suggested above. The short term bias is up, which may not last but the long term bias is 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.