A TECHNICAL VIEW ON CNX-NIFTY FOR --8.7.2020

CNX-NIFTY

Open-10802.85--High-10813.80—Low-10689.70—Close-10799.65 on 7.7.2020

 Support:10782.60/10670.25/10637.15/10583.65/10553.15/10409.85/10328.50/10223/10194.50/10172/10038/9970.80/9944.40/9889.05.

Resistance: 10813.10/10941.20/11090/11118.10/11270.

Critical Points moving down:-10760—10667--10583.65--10553.15--10409.85.

Critical Points moving up:-10841---10895---10960—10990.

 (Bold and underlined figures are most important)  

 It is showing good strength and in an uptrend but for the up move to continue from here it has to maintain above 10813.10 on the closing basis then it could hit 11134 -11270 & 11447 levels. Else it could move sideways and the range would be 10813.10---10667—10583.65. So moving up 10813.10 is vital resistance point and apart from this other resistance points are 10841---10895---10960---10990. The benchmark point is 10583.65 and 2 other critical points are at 10667.64(earlier it was 10665.81) and 10553.15. The bias is up as of now. Therefore long trade can be tried on decline but not below 10667.64, but it would be relatively safe to try long trade  if it maintains above 10813.10.

Please note that the other observation and view in my post for 7.7.2020 will be valid for 8.7.2020 also, except for some change in 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. 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. It could be a risky trade.

Or

Buy on decline if it holds 10667.64 level for some time with a stop loss of 10620.

Or

 Buy if it maintains above 10813.10 for some time with a stop loss of 10740. 

 

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 10850—10930 with a stop loss of 10960.

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.