A TECHNICAL VIEW ON CNX-NIFTY FOR-20.5.2020

CNX-NIFTY

 

Open-8961.70--High-9030.35—Low-8855.30—Close-8879.10 on 19.5.2020

Support:8821/8801.14/8700/8672.07/8617/8542.59/8480/8419/8220/8148.50/8055/7947.74.

 Resistance:8909.40/8981/9062.17/9146/9190/9260/9290/9327.85/9390.31/9468.75/9685.55/9687.55.

 (Bold and underlined figures are most important)                                                                       

It opened on a strong  note today at 8961.70 and made a high of 9030.35 but could not sustain at the higher level and move down to make a low of 8855.30 and closed the day near the low at 8879.10 with a gain  of 55.84 points. It did give an up move as envisaged in my post for 19.5.2020 but it lacked strength.

After yesterdays huge fall, it was a very weak pullback move therefore it seems that it is not going to last and can fizzle out any time may be today itself. However in case the up move continues a close above 9062.17 is required to indicate that it can further move up, but  looking at today’s movement it is less likely to happen. So one should think of long trade only if it moves above 9062.17 and sustain on the closing basis. Moving down the support ranges for now is mentioned hereunder.

1. 8821---8801---8672- sustained break below 8672 will indicate that it could retest or break its bottom of 7511.10 made on 24.3.2020 in coming days/weeks.

2. 8542.59---8480---8419.

In view of the above observation the upside seems to be capped now in the range of 9062.17-----9160. The trend is down therefore I once again reiterate that long trade should be completely avoided as of now. Therefore any rise in it should be utilised for selling till it closes above 9062.17 and sustain. 

TRADING STARTAGY      

1. Sell on the rise in the range of 8980---9030---9090---9160 with a stop loss of above 9250. Kindly note that the self defined short stop losses can also be applied by the traders, but the authentic stop loss would be 9250 only.                                  

 Or

Sell below 8850 with a short stop loss of above 8880.

Or

Sell below 8801 with a short stop loss of above 8860.

Remark: - The long term trend is down. Today’s up rally was very weak; therefore long trade should be completely avoided for now and be reviewed only if it closes above 9062.17. Only short trade should be attempted as suggested above. The long term bias is hugely 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.