A TECHNICAL VIEW ON CNX-NIFTY FOR --28.5.2020

CNX-NIFTY

 

Open-9082.20--High-9334—Low-9004.25—Close-9314.95 on 27.5.2020

 

Support:9220/9158/9141/9131/9116/9090/9062.17/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.

 

Resistance:9327.85/9348.12/9390.31/9468.75/9584.50/9685.55/9687.55/9700/9889.05/.

 

 (Bold and underlined figures are most important)                                                                       

It unexpectedly gave a robust up move today clocking a gain of 285.90 points. It has closed way above its critical points of 9062.17 & 9090.80, above its short term moving averages on the daily chart and given breakout from the short term down trend line which is a bullish sign. It exhibited tremendous strength all round and if it could hold on to the momentum it showed today it could definitely move higher.  But moving ahead a sustained close above its most important and critical points of 9327.85—9348.12---9390.31 is essentially required to open the bigger upside. Please note that sustained close above 9390.31 can take it closer to 10000 mark again.

In view of today’s up move one should be extra careful in short trade and should not try it frequently as of now but it should be attempted at the specific points with strict stop losses because it is a pullback rally and can take about turn any time. Long trade can be tried on decline but with extreme caution and care.    

TRADING STRATEGY 

1. Buy on decline but not below 9190 with a stop loss of below 9120.

Or

    Buy if it maintain above 9390.31 for some time with a stop loss of

    below 9300.

    

2. Try selling if it does not cross 9390.31 even intraday in first two hours of trade with a stop loss of above 9430.

Or

     Sell near or within the range of 9475---9560 with a stop loss of 9620.

 NOTE: - If it gives indication of closing above 9390.31 then short trade should be squared off in any case.

Remark: - The long term trend is down. But if it could maintain today’s up momentum and sustain above the most important and critical points on the closing basis as mentioned above then it could move much higher. So exercise caution in short trade now but should be tried as suggested above. Long trade should be tried as suggested above but with caution. 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.