TECHNICAL VIEW ON CNX-NIFTY FOR-19.6.2020

CNX-NIFTY

 Open-9863.25--High-10111.20—Low-9845.05—Close-10091.65 on 18.6.2020

 Support: - 10033/9970.80/9944.40/9889.05/9726.25/9700/9685.55/9600/9580/9475/9390.31/9299/9220/9158/9141/9131/9116/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555

Resistance: - 10143.44/10178.95/10276.20/10328.50/10333.85/10417.80/10490.95/10551.20/10557.70/10637.15/10670.25/10782.60/10941.20.

Critical Points moving down:-9970.80—9944.40---9889---9726.25--9663.59.

Critical Points moving up:-10143.44---10171.67—10328.50---10551.20--10583.65.

(Bold and underlined figures are most important)  

It crossed its recent top of 9914 so it is in the process of making a higher top and it has already made higher bottom at 9881.15 today and closed well above its critical points of 9944.40 & 9970.80, furthermore it also moved above one of its long term moving averages which is placed at 10038, which is good sign, therefore it has turned into buy on decline market as of now. It is important to mention here that geopolitical and economic conditions and other related fundamentals are not supporting this rise and it is purely a liquidity driven rally, therefore long trade should be handled with extreme care and caution because this up move can end abruptly also. Moving up it will face resistance at 10144—10176--10280—10360—10485—10551—10583.65. Since, this rally is not fundamentally backed so short trade should also be attempted at appropriate points. The short term bias technically is in favour of long trade now.

TRADING STRATEGY

1. Buy on decline at appropriate points but not below 9944.40 with a stop loss of 9860.

Or

   Buy if it moves above 10112 and maintain for some time with a stop loss of 10020.

2. Sell on the rise near or within the range of 10180(S/L-10210)-10280(S/L-10300)-10360(S/L-10390)-10485(S/L-10515)-10584(S/L-10620).

Or

Sell if it maintains below 9880 for some time with a stop loss of above 9970.

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. Squaring off is strongly suggested.

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.