A TECHNICAL VIEW ON CNX-NIFTY FOR -15.5.2020

CNX-NIFTY

 

Open-9213.95--High-9281.10—Low-9119.75—Close-9142.75 on 14.5.2020

Support:9141/9120/9116.50/9090/9038.90/8980/8948/8905/8880/8842.28/8821.90/8801.14/8700/8672.07/8617/8555.

Resistance:9185/9240/9260/9280/9305/9327.85/9390.31/9468.75---9478/9493/9584.50/9685.55/9687.55/9722/9822.

 (Bold and underlined figures are most important)    

 It could not sustain yesterdays euphoric up move and opened today with a down gap at 9213.95 and made a high of 9281.10 and then moved down and made a low of 9119.75 and finally ended the day almost near the low at 9142.75 with a loss of 240.80   points. It wiped out its yesterdays gain completely and registered fresh losses today, which speaks of gross weakness in it.

It is in down correction mode and yesterdays up move was just an overreaction of the economic package announcement and hence fizzled out abruptly. It is therefore suggested to avoid long trade completely till it moves above 9390.31 and sustain on the closing basis. It is strongly suggested to adopt sell on the rise strategy or sell on the price breakdown as of now. Moving down it has good support at 9120---9090---9038---8990---8940 but sustained break below 9038 may accelerate the fall.

     

TRADING STARTAGY      

 1. Sell on the rise in the range of 9220----9240----9270---9327.85---9390.31, but not above 9390.31 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. Yesterdays robust up move fell flat today which indicate gross weakness, therefore long trade should be completely avoided till it closes above 9390.31 and sustain. I would still prefer and 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.