CNX-NIFTY
Open-10347.95--High-10484.70—Low-10301.75—Close-10471
on 23.6.2020.
Support: - 10328.50/10272/10172/10040/9970.80/9944.40/9889.05/9726.25/9700/9685.55.
Resistance: - 10490.95/10551.20/10557.70/10583.65/10637.15/10670.25/10782.60/10941.20.
Critical Points moving down:-10328.50--10272--10172--10040--9970.80—9944.40.
Critical Points moving
up:-10490---10551.20--10583.65.Sustained close above 10583.65 will give extra
strength to it and it can move much higher then.
(Bold
and underlined figures are most important)
After making higher bottom of 9881.15 on
17.6.2020, it has been moving up vertically since and hit a high of 10484.70 today,
so it has shot up by more than 600 points in 4 days, which exhibits tremendous
strength but please note that the vertical rise may have vertical fall too if
it corrects and in between corrections are bound to happen in the uptrend.
Therefore be alert for correction, it can set in any time but buying should be
initiated on decline and as of now the key buying points are 10328.50--
10272—10172---10040 for the ongoing week as of now. Please note that sustained
break below 10328.50&10272 can drag it down to 10172 and sustained break
below it will in indicate that correction could further deepen and can drag it
down to 10040 and break below this can accelerate the fall. It is therefore
suggested to avoid long trade below 10172 as of now.
In view of the above observation, for safe traders,
it is suggested to avoid long trade today and wait for the possible correction
on the end of the day basis and then plan to initiate long trade the next day
if price favours. However aggressive trader can try long trade on intraday
correction as suggested below.
It is needless to mention here that the ongoing uptrend
is purely liquidity driven and lacks fundamentals completely therefore it can
culminate surprisingly and can trap the traders at higher levels, so be
vigilant and extra cautious in the long trade. Short trade should also be
attempted at critical points to take advantage of the possible correction. The
bias is up now.
TRADING STRATEGY
1. Buy on decline near if it holds 10328.50 & 10272 intraday
with a stop loss of 10240.It could be a risky trade.
Or
Buy on decline near if
it holds 10172 intraday with a stop loss of 10130.It could be a risky trade.
2. Sell on the rise near
or within the range of -10550-10600(S/L-10650). Contrarian trade, therefore
risky, but worth trying.
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.
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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.