A TECHNICAL VIEW ON CNX-NIFTY FOR -7.5.2020

CNX-NIFTY

Open-9226.80--High-9346.90—Low-9116.50—Close-9270.90 on 6.5.2020

Support:9262/9241/9227/9205.60/9116.50/9090/9038.90/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.

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

 (Bold and underlined figures are most important)                                                                       

It opened flat to positive today at 9226.80 and went down to make a low of 9116.50 then it bounced back and made a high of 9346.90 and closed above the previous day’s close at 9270.90.

It has been closing below its most critical point of 9327.85 & 9390.31 for last three days, which is a weak sign, but since it is still making higher top& bottom on the line chart therefore a close below 9205.60 is required as of now to confirm and trigger the down move convincingly. Please note that sustained close above the critical & important point of 9327.85 & 9390.31 can still take it higher, so be watchful in short trade if it closes above these points and sustain. Since relief rally top seems to be in place therefore long trade should be completely avoided. Short trade would be a better and safe option 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 9460 only.

Or

    Sell below 9250 with a stop loss of above 9280. This is a short stop

    loss It could be triggered but one has to maintain short position again

    below 9250  for the day.

Remark: - The long term trend is down. It is almost confirmed that the pullback rally has exhausted and down move has begun but a close below 9205.60 is important as of now to accelerate the fall. In view of the above observation 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.

Contact me for strategic guidance to enter and exit trade.