A TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---6.7.2020

CNX-NIFTY

 Open-10614.95--High-10631.30—Low-10562.65—Close-10607.35 on 3.7.2020

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

Resistance: 10637.15/10670.25/10782.60/10941.20/11090/11118.10/11270.

Critical Points moving down:-10583.65--10553.15—10528---10409.85—10374.77--10328.50—10194.50.

Critical Points moving up:-10645—10671--10760—10825---10898---10960.

 (Bold and underlined figures are most important)  

It ended the week on a strong note by closing above its most critical and benchmark point of 10583.65. Therefore as long as it holds this level on the closing basis it can go up to the level of 11270 & 11447 but moving up it will face very stiff resistance at 10645—10671--10760—10825---10898---10960 levels. Similarly sustained break below 10583.65 on the closing basis may signal termination of the ongoing up move which may please be noted. I would also like to mention here that apart from its benchmark point it has 2 other important points also at 10553.15 & 10528.21 and sustained break below 10528.21 may trigger fall.

The trend is up therefore buying is suggested on decline but not below 10583.65 in any case. Please note that sustained break below 10528.21 on the closing basis will indicate that it may slip in to the correction mode and sustained break below 10400&10300 may accelerate the fall. 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 because there is a saying that money comes fast and it goes away even faster. 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 10631 with a stop loss of 10570.

Or

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

 

2. Sell if it maintains below 10583.65 for some time with a stop loss of 10635.

Or

Sell if it maintains below 10528 for some time with a stop loss of 10600.

Or

Sell on the rise near or within the range of 10760—10825 with a stop loss of 10860.

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.