CNX-NIFTY
Open-9429.40--High-9450.90—Low-9190.95—Close-9205.60
on 5.5.2020
Support:9141.30/9090/9038.90/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.
Resistance:9239/9257/9264/9327.85/9390.31/9468.75/9685.55/9687.55.
(Bold and
underlined figures are most important)
It opened at 9429.40 today well above the previous day’s close and
made intraday high of 9450.90 but could not sustain at the upper level and made
a low of 9190.75 and closed the day near the low at 9205.60. It was a weak
closing today.
It is important to mention here that it did traded above the
critical point of 9327.85 & 9390.31 for the reasonable time period today but closed well below it, which indicates gross weakness,
therefore it seems that the pullback rally top is already in place at 9889.05
and down move should intensify now, however in between short up rally cannot be
ruled out. Therefore it is suggested to avoid long trade completely till it
closes above its critical points as mentioned above. It is strongly suggested
to attempt short trade on the rise at appropriate points as of now.
Moving down it will find good support in the range of 9090---9038
and then 8909—8801---8672, please note that sustained break below 9038 on the
closing basis will accelerate the fall.
TRADING STARTAGY
1. Sell on the rise in the range of 9250---9327.85---9390.31 but
not
above 9390.31 with a stop loss of above 9475.
Kindly note that the
self defined stop losses can be applied by
the traders but the authentic
stop
loss would be 9475 only.
Or
Sell below 9190 with a
stop loss of above 9270.
Remark: - The long term trend
is down. It is almost confirmed that the pullback rally has exhausted and the
down move should accelerate now. Therefore long trade is a complete avoid till
it closes above 9327.85 & 9390.31. 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.
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