A TECHNICAL VIEW ON CNX-NIFTY FOR -5.5.2020

CNX-NIFTY

Open-9533.50--High-9533.50—Low-9266.95—Close-9293.50 on 4.5.2020

Support:9265/9250/9242/9211/9141.30/9090/9038.90/8981.45/8966/8860/8842.28/8821.90/8801.14/8672.07/8617/8555/.

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

 (Bold and underlined figures are most important)                                                                       

It opened with a huge down gap and did not make any effort during the day to fill the gap which is a weak sign, it seem that it was a breakdown gap, however it is technically possible that it can make an effort to fill this gap in next 3-4 trading session and if it does then it can move up to 9731.50, but looking at today’s move it seem less likely.

Its sharp decline today indicates that the pullback rally top is in place at 9889.05 and if it is so then it should not close above 9327.85 & 9390.31 and drift down from here. Please note that moving down it has bed of support in the range of 9265/9250/9242/9211 and then at 9090---9038. So the range for the day would be 9390.31---9327.85----9211----9038. Break below 9200 will trigger fresh fall and sustained break below 9038 will take it down sharply. In view of above observation it is suggested to avoid long trade till it closes above 9390.31 instead short trade would be a better option as of now.   

TRADING STARTAGY      

1. Can try long trade if it moves above 9390.31 and sustain for 15

     minutes with a stop loss of below 9300.It could be a risky trade.       

2. Sell on the rise near or within the range of 9327.85---9390.31 but not  

    above 9390.31 with a stop loss of above 9475.

Or

    Sell below 9211 with a stop loss of above 9330.

Remark: - The long term trend is down. The pullback rally seems to have exhausted and down move has begun provided it should not close above 9327.85 & 9390.31 and move down from here. Avoid long trade till it closes above 9390.31,instead 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.