A BROAD TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---26.5.2020

CNX-NIFTY

 

Open-9067.90--High-9149.60—Low-8968.55—Close-9039.25 on 22.5.2020

 

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

 

 

Resistance:9062.17/9090.80/9116.25/9160/9220/9327.85/9348.12/9390.31/9468.75/9685.55/9687.55.

 

 (Bold and underlined figures are most important)                                                                       

It opened on a negative note at 9067.90 and made a high of 9149.60 then slipped down and made a low of 8968.55 and ended the day at 9039.25 with a loss of 67 points. The important thing is that it closed below its critical point of 9062.17.

 

Although it closed below its critical point of 9062.17 after staying above it for two days, which is a weak sign, but it has very strong support in the range of 9020---8900 therefore till it breaks the 8900 mark it may oscillate in the range of  8900---9100—9160----9220----9327.85----9390.31. So it may swing both ways now, therefore in the present situation both side trades can be tried depending on the price movement. It has two critical points now at 9062.17 & 9090.80 and sustained close above these points can only take it higher else this rally may exhaust. Similarly if it trades below 9000 it will give weak signal and sustained break below 8900 on the closing basis can trigger sharp fall.

 

It is important to mention here that the ongoing up move which started from 8806.75 is a pullback rally and may exhaust abruptly, moreover it is long term down trend and therefore one should be extremely vigilant and cautious particularly in long trade. Short trade can also be attempted at specific points with strict stop losses.  

 

TRADING STRATEGY 

1. Buy if it maintain above 9062.17 with a short stop loss of below 9020, but the authentic stop loss would be 8950.

Or

    Buy if it maintain above 9090.80 with a stop loss of below 9020.

   

    

2. Can try selling at critical range 9180----9220(S/L- 9250), 9327.85—9390.31 (S/L—9460).

Or

 Sell I it maintains below 9060 with a stop loss of above 9110.

Or

Sell if it maintain below 8940 with a stop loss of above 9045.

Remark: - The long term trend is down. It is in a range now therefore both side trades can be tried depending on the price movement, but one has to be extremely cautious in both side trades particularly in long trade, which may be kept in mind.  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 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.