A TECHNICAL VIEW ON CNX-NIFTY FOR -12.5.2020

CNX-NIFTY

 

Open-9348.15--High-9439.90—Low-9219.95—Close-9239.20 on 11.5.2020.

Support:9236/9191/9130/9116.50/9090/9038.90/8981.45/8966/8880/8842.28/8821.90/8801.14/8672.07/8617/8555/.

Resistance:9290/9327.85/9390.31/9468.75/9685.55/9687.55.

 

 (Bold and underlined figures are most important)                                                                       

It opened with huge upside at 9348.15 and went on to make a high of 9439.90 but could not sustain at higher level and plunged down sharply to make a low of 9219.95 and ended the day near the low at 9239.20. It behaved the same way on 8.5.2020 also, so it is showing weakness at the upper level for sure.

It has been making lower top and bottom but moving down some short term moving averages are still providing support for it at 9236---9190---9130 for 12.5.2020 and weekly bottom at 9116, therefore sustained break below 9116  may accelerate the fall, else it may bounce back from these level and consolidate for few days before finally breaking these levels. Moving up it will face stiff resistance at 9270.90/9327.85 & 9390.31 and sustained close above these points and particularly above 9390.31 would indicate that it may move higher. Since it is in correction mode it is suggested to adopt sell on the rise strategy or sell on the price breakdown and think of long trade only once it closes above 9390.31 and sustain.     

TRADING STARTAGY      

 1. Sell on the rise in the range of 9270---9327.85---9390.31 ---9450

    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

    Sell below 9219 with a short stop loss of above 9260. This stop loss

    can be triggered, which may please be noted.

 

Remark: - The long term trend is down. It is in correction mode now so long trade is a complete avoid till it closes above 9390.31 and sustain, 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.