A BROAD TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---11.5.2020

CNX-NIFTY

Open-9376.95--High-9382.65—Low-9238.20—Close-9251.50 on 8.5.2020

Support:9238/9200/9199.05/9141/9116.50/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.

Resistance:9270.90/9299/9327.85/9390.31/9468.75/9685.55/9687.55.

 (Bold and underlined figures are most important)                                                                       

It opened with a huge up gap at 9376.95 and made a high of 9382.65 but could not sustain at higher level and in the afternoon plunged down and made a low of 9238.20 and ended the day near the low at 9251.50 but up by 52.45 points over previous days close . Please note that it filled the gap during the day.  

Technically it shows weakness  as it has started making lower top & bottom after a long time, it has also broken most of its short and medium term averages on the daily and weekly chart except for some and most importantly it is well below its long term moving averages on the daily & weekly chart. Therefore it is expected to go down for sure in coming days but it will gather  momentum if it sustains below 9200.

Kindly note that moving up it will face stiff resistance from its most important and crucial points at 9270.90---9327.85---9390.31 but sustained close above 9390.31 could take it higher, which may please be noted. But looking at the overall technical setup the upside seem to be capped at 9390.31 as of now, therefore long trade should be completely avoided till it moves above 9390.31 and sustain on the closing basis. So, short trade on the rise or on the price breakdown should be the best option as of now,but be alert in short trade if it closes above 9390.31.

Moving down it will find good support in the range of 9090---9038 and then 8909—8801---8672 and sustained break below 9038 on the closing basis will further accelerate the fall. It is important to mention here that sustained close below 8672 will indicate that it could retest or break the bottom of 7511.10 it made on 24.3.2020 in coming days/weeks.

TRADING STARTAGY      

1. Sell on the rise in the range of 9270---9327.85---9390.31 ---9430

    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
Can sell at C.M.P also but the stop loss would be 9475 only as of now.

Or

   Sell below 9116 with a stop loss of above 9150.

Remark: - The long term trend is down. Since it has made lower top & bottom the down move should accelerate now. In view of the above observation long trade is a complete avoid till it closes above 9390.31 and sustain. Only short trade should be attempted as suggested above. 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.