A TECHNICAL VIEW ON CNX-NIFTY FOR -14.5.2020

 CNX-NIFTY

 

Open-9584.20--High-9584.50—Low-9351.10—Close-9383.55 on 13.5.2020

 Support:9345/9327.85/9280/9260/9240/9210/9140//9116.50/9090/9038.90/8980/8966/8880/8842.28/8821.90/8801.14/8700/8672.07/8617/8555

 

Resistance:9390.31/9468.75/9493/9584.50/9685.55/9687.55/9722/9822

(Bold and underlined figures are most important)    

 After the announcement of economic stimulus package by the Honorable Prime Minister yesterday night, it opened with a huge up gap at 9584.20 and made a high of 9584.50 and then went down to make a low of 9351.10 and finally closed the day at 9383.55 up by 187 points. The gap it created today is still there and if it makes an effort to fill the gap in next 3-4 days which is technically possible then it can come down to 9240.85 levels.

                                                         

It is showing some strength as it has closed above its two recent lower tops and moved above its short term moving averages also, so it may move higher, but it is yet to close above its most important and crucial point of 9390.31. It seems that today’s robust up move was just a reaction of stimulus package announcement so it has to be seen for next 2-3 days whether  this up move will last or not. Therefore long trade should be avoided till it closes above 9390.31 and sustain. However moving down it has bed of support in the range of 9345—9327.85---9300----9280-----9260----9240----9210---9140---9116.50, therefore  those who wish to try long trade can try it on decline at any of these points but not below 9240 with a stop loss of below 9200. It could be a risky trade mind you. I would personally prefer and suggest trying short trade on the rise till it closes above 9390.31 and sustain.

      

TRADING STARTAGY      

 

1. Sell on the rise in the range of 9390.31 ---9490--- 9550, but not above

   9550 with a stop loss of above 9600. Kindly note that the self defined        

   short stop losses can  be applied by the traders, but the authentic stop

   loss would be 9600 only.

 

NOTE: - Short trade should be squared off if it indicates closing above 9390.31.   

 

Remark: - The long term trend is down. It gave a good up move today  but whether it will last or not has to be seen in next 2-3 days, therefore long trade should be avoided till it closes above 9390.31,however aggressive trader can long trade as suggested above in the 2^nd paragraph. I would still suggest adopting sell on the rise strategy till it closes above 9390.31 and sustain. 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.