A TECHNICAL VIEW ON CNX-NIFTY FOR—1.7.2020

CNX-NIFTY

 Open-10382.60--High-10401.05—Low-10267.35—Close-10302.10 on 30.6.2020

 Support:10288/10267.35/10194.50/10172/10038/9970.80/9944.40/9889.05/ 9881.15/9700/9685.55/9584.50/9544.

Resistance: 10315/10328.50/10383/10409.85/10471/10553.15/10583.65.

Critical Points moving down:-10288---10267.35---10194.5--10168---10038—9944.40—9889.05--9881.15.

Critical Points moving up:-10315—10328.50—10409.85--10471--10584.

(Bold and underlined figures are most important)  

It crossed its recent closing top of 10383 during the day and went near the intraday top of 10409.85(see my post for 30.6.2020) but ended the day way below these points but marginally below yesterday’s close. Although it managed to hold its recent bottom of 10288.90 but closed below its critical point of 10328.50 & 10315 which is not an encouraging sign, furthermore some of the important technical indicators are indicating that either this rally has ended or it is almost near completion.

Please note that the other observation and view in my post for 30.6.2020 will be valid for 1.7.2020 also, except for some trading strategy.

I make it a point to mention in almost 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.

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 10328.50 with a stop loss of 10270.It could be a highly risky trade.

2. Sell if it maintains below 10267 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 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.

 

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.