A TECHNICAL VIEW ON CNX-NIFTY FOR --9.7.2020

CNX-NIFTY

Open-10818.65--High-10847.85—Low-10676.55—Close-10705.75 on 8.7.2020

 Support:10670.25/10637.15/10583.65/10553.15/10409.85/10328.50/10223/10194.50.

Resistance: 10782.60/10813.10/10847.85/10941.20/11090/11118.10/11270.

Critical Points moving down:-10693.66--10583.65--10553.15--10409.85.

Critical Points moving up:-10813.10--10848---10896---10960—10990.

 (Bold and underlined figures are most important)  

It did move above its vital resistance point of 10813.10(see my post for 8.7.2020) today and gave whip saw number of times around it during the day, but finally went below it sharply towards the end of the day and closed near the low of the day. Since it could not hold above its important level of 10813.10 therefore it corrected today but the uptrend is still intact as of now. It has 3 critical points at 10693.66( earlier it was 10667.64)---10583.65---10553.15 sustained break below 10693.66 on the closing basis will signal that it can slip into correction mode  and sustained break below 10583.65 & 10553.15 will accelerate the  fall. The technical setup is good despite today’s fall, so if it has the strength it should stay above 10693.66 on the closing basis and if it doesn’t then correction could deepen. Moving down it will find good support at 10583.65—10553.15---10444.07---10325 levels and any of these could be the possible correction completion points also, which may please be noted. 

In view of the above observation it still looks good for up move, but in light of today’s down move it is suggested to avoid long trade below 10693.66 for sure because then it could slip in for good correction. Therefore long trade can only be tried if it maintains above 10724 for the reasonable period of time. I once again reiterate that it will pick up momentum only if it sustains above 10813.10 on the closing basis and finally crosses its today’s high of 10847.85 and if it does not move above both the points it in next 3-4 trading session then it may be construed the top is in place at 10847.85 for the time being. Since it corrected today therefore short trade should also be attempted in the critical range or on the price breakdown for taking advantage of corrective move or a possible rally breakdown.      

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 if it moves and maintains above 10724 for some time with a stop loss of 10660. It could be a risky trade for the day but worth trying.

Or

 Buy if it move and maintains above 10813.10 for some time with a stop loss of 10780. 

2. Sell if it maintains below 10693 for some time with a stop loss of 10730.

Or

Sell on the rise near or within the range of 10850—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.