A TECHNICAL VIEW ON CNX-NIFTY FOR---3.6.2020

CNX-NIFTY

 

Open-9880.85--High-9995.60—Low-9824.05—Close-9979.10 on 2.6.2020

 Support: 9970.80/9944.40/9889.05/9700/9685.55/9600/9580/9475/9390.31/9327.85/9299/9220/9158/9141/9131/9116/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555

Resistance: 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 is exhibiting tremendous strength as it has closed above its critical points of 9944.40 & 9970.80 today, so it has opened the upside up to 10550 till it hold above these points on the closing basis. Although it looks good on the short term technical parameters for further up move. But it has entered into the vulnerable zone and moving up it will face stiff resistance from its long term moving averages in the range of 10050—10117---10188---10237---10351---10465---10500, so up journey may not be smooth. Furthermore it has been vertically moving up from the level of 9029 and in last five trading sessions it has scaled up by almost 1000 points, the vertical rise is not good for steady market and that too for a relief rally because when it corrects it may have vertical fall too. It seems that it has entered into highly vulnerable zone where correction looks imminent because sailing through the above resistance range looks slightly difficult at this point of time.

Short term trend is up but since it has entered into a danger zone, so for safe trader it is suggested to avoid long trade for today but aggressive trader can still try long trade as suggested below. Please note that the price movement does not suggest instinctive short trade but since the ongoing up move is supposedly a pullback rally which generally ends abruptly therefore short trade should be tried at the critical range for sure with strict stop loss.      

TRADING STRATEGY 

1. Buy on decline at appropriate points but not below 9944.40 with a stop loss of 9890.

Or

Buy if it maintains above 9996 for some time with a stop loss of 9920.

2. Can try selling in the range of 10120---170--- with a stop loss of 10210.

Or

Sell if it maintain below 9920 for some time with a stop loss of above 9980.

Remark: - The long term trend is down. Short term trend is up but it has possibly entered the vulnerable zone where correction looks imminent, so safe trader should avoid long trade today but aggressive trader can try as suggested above. 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.