A TECHNICAL VIEW ON CNX-NIFTY FOR---2.6.2020

CNX-NIFTY

 

Open-9726.85--High-9931.60—Low-9706.95—Close-9826.15 on 1.6.2020

 Support:9700/9685.55/9666/9600/9580/9475/9390.31/9327.85/9299/9220/9158/9141/9131/9116/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555

 

Resistance:9889.05/9944.40/9951/9970.80/10004.45/10033.35/10137.85/10178.95/10276.20/10333.85/10417.80/10490.95/10551.20.

(Bold and underlined figures are most important)                                                              

It opened with a huge up gap at 9726.85 and made a low of 9706.95 and then moved up steadily and made a high of 9931.60 and ended the day at 9826.15 with a good gain of 245.85 points. It is looking good but note that the gap it created today is still there and if it makes an effort to fill this gap in next 3-4 trading session which is technically possible then it can come down to 9598.85.

As expected it moved higher but could not cross stiff resistance point of 9944.40 & 9970.80(see my post for 1.6.2020) and reacted from there, it still has strength but now further bigger up move will only happen if it moves above 9944.40 & 9970.80 and sustain on the closing basis, please note that sustain close above 9970.80 will open the upside up to 10551. Therefore long trade should be avoided near or within the range of 9944.40---9970.80 till it close above it, instead short trade can be tried near or within this critical range with a strict stop loss because this is a relief rally in the long term downtrend and may fizzle out any time without giving a signal. In view of the above long trade can be tried on decline but with extreme caution and care.

 

TRADING STRATEGY 

1. Buy on decline at appropriate points but not below 9598.85 with a stop loss of below 9560.

 

2. Can try selling in the range of 9944---9971 with a stop loss of 10080. Please note that if your stop loss is not triggered and it gives an indication of closing above 9970.80 then square your short position in any case.

Remark: - The long term trend is down. Short term trend is up and it is giving strong up moves but long trade can be tried either on decline or if it closes above 9970.80 only this would be relatively safe trade. Short trade should also be attempted as suggested above. The short term bias is up, which may not last long. 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.