A TECHNICAL VIEW ON CNX-NIFTY FOR --7.7.2020

CNX-NIFTY

Open-10723.85--High-10811.40—Low-10695.10—Close-10763.65 on 6.7.2020

 Support:10670.25/10637.15/10583.65/10553.15/10528.31/10471/10409.85/10328.50/10315/10223/10194.50/10172/10038/9970.80/9944.40/9889.05.

Resistance: 10782.60/10811/10941.20/11090/11118.10/11270.

Critical Points moving down:-10760—10665--10583.65--10553.15--10409.85.

Critical Points moving up:-10837---10898---10960—990.

 (Bold and underlined figures are most important)  

It opened with an up gap at 10723.85 and made a low of 10695.10 immediately and then went up and made a high of 10811.40 and closed with a gain of 156.30 points. The gap it created today is still there and if it makes an effort to fill the gap in next 3-4 days which is technically possible then it can come down to 10631. It is exhibiting good strength for the up move to continue.

It is well above its benchmark point of 10583.65 and two other critical points of 10665.81(it can change, earlier it was 10528.21) & 10553.15 which is a good sign. Therefore buy on decline is suggested but not below its benchmark point of 10583.65 in any case but it would be relatively safe to buy above its first critical point of 10665.81 because if it sustain below it on the closing basis then it could break the benchmark point of 10583.65 and other critical point of 10553.15 also which may trigger big correction. Therefore short trade should also be attempted at critical range or point to take advantage of correction or may be a possible rally breakdown. The bias is up as of now.

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. So be vigilant and extra cautious in the long trade.

 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 on decline but not below 10583.65 with a stop loss of 10540.

Or

 Buy if it maintains above 10765 for some time with a stop loss of 10710. 

 

2. Sell if it maintains below 10553.15 for some time with a stop loss of 10600.

Or

Sell on the rise near or within the range of 10840—10900 with a stop loss of 10930.

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.