A TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---29.6.2020

CNX-NIFTY

 

Open-10378.90--High-10409.85—Low-10311.25—Close-10383 on 26.6.2020

 Support:10328.50/10315/10288/10194/10172/10038/9970.80/9944.40/9889.05/ 9881.15/9700/9685.55/9584.50/9544.

Resistance: 10471/10553.15/10583.65/10637.15/10670.25.

Critical Points moving down:-10328.50—10315---10172---10038—9944.40—9889.05/9881.15.

Critical Points moving up:-10471--10584.Sustained close above 10584 can take it to much higher levels.

(Bold and underlined figures are most important)  

It exhibited huge volatility during the preceding week and it is likely to continue this week also. It closed well above its critical points of 10315 & 10328.50 and making higher top & bottom so it looks good for the further up move as long as it holds its recent bottom of 10288.90 on the closing basis and intraday bottom of 10194.50 as of now. But it is suggested to avoid long trade below 10328.50 & 10315 in any case. To regain good strength in the up move it has to move and close above its recent top of 10471 and then hold the recent bottom of 10288.90 on decline and eventually move above 10584 and sustain on the closing basis then it can go much higher else it can end the present up move abruptly also. Therefore it seems that it is in a critical zone now from where it can move either way but the tilt is in favor of up move as of now.

In view of the above observation it seems prudent to avoid long trade on decline now because then it will be making a lower top which will be a weak signal for the up move to continue, however if it does not break the bottom of 10288.90 on the closing basis then the long trade can be tried the next day above 10315 & 10328.50 with a stop loss of 10260. Similarly if it closes below 10288.90 then it will make lower top and will be in the process of making lower bottom so the ongoing up move may end.

I make it a point to mention in my all post that the upsurge in the entire world market is purely liquidity driven and completely defies fundamentals therefore it can end mischievously because there is a saying that money comes fast and it goes away even faster. So be vigilant and extra cautious in the long trade. Short trade should also be attempted at critical points to take advantage of correction or may be a possible rally breakdown. The bias is up now.

NOTE: - If it opens up with huge gap up then wait for it to settle down before initiating long position, but short trade can be attempted on huge gap up if it is near the selling point and vice versa . Since, it is showing volatility so any type of trade should be squared off during the day, if you don’t have reasonable profit margin in the trade. Day squaring off is strongly suggested in any case.

TRADING STRATEGY

1. Buy if it maintains above 10410 with a stop loss of 10350.It could be a highly risky trade.

 

2. Sell on the rise near or within the range of 10550---10584 with a stop loss of 10640.

Or

Sell if it maintains below 10280 for some time with a stop loss of 10340.

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 favorable 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.

 

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.