A TECHNICAL VIEW ON CNX-NIFTY FOR -13.5.2020

CNX-NIFTY

 

Open-9168.85--High-9240.85—Low-9043.95—Close-9196.55 on 12.5.2020

 Support:9180/9125/9116.50/9090/9038.90/8980/8966/8880/8842.28/8821.90/8801.14/8700/8672.07/8617/8555/.

 

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

 (Bold and underlined figures are most important)                                                                       

It opened with a down gap at 9168.85 and went down further and made a low of 9043.95 it did break the weekly bottom of 9116.50 but took support near the important point of 9038(see my earlier post) and then it bounced back in the late afternoon and made a high of 9240.85 and ended the day at 9196.55.

It may still consolidate in the range of 9390---9328---9290---9180---9116---9038---8980 for few days before it breaks down. Please note that breakdown seems inevitable at this point of time and it could happen any day, therefore long trade should be completely avoided as of now and should only be tried if it moves above 9390.31 and sustain on the closing basis because then it could move higher. Since it is in correction mode it is suggested to adopt sell on the rise strategy or sell on the price breakdown. It is also suggested to take advantage of intraday swing in the market to square off the trade and initiate fresh short trade at appropriate price. Please note that sustained break below 9116---9038 & 8980 on the closing basis will accelerate the fall.    

     

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.    

 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 on the rise 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.