A TECHNICAL VIEW ON CNX-NIFTY FOR --10.7.2020

CNX-NIFTY

Open-10755.55--High-10836.85—Low-10733—Close-10813.45 on 9.7.2020

 Support:10813.10/10782.60/10670.25/10637.15/10583.65/10553.15/10409.85/10328.50/10223/10194.50.

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

Critical Points moving down:-10813.10---10693.66--10583.65--10553.15.

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

 (Bold and underlined figures are most important)  

After a correction on 8.7.2020 it bounced back on 9.7.2020 and closed shade above its critical resistance point of 10813.10. As long as it closes above 10813.10 and on decline holds 10693.66 on the closing basis, it looks ok for the further up move. But it has made double top at 10836.85 & 10847.85 in last two days and until and unless it crosses these points it may not gain further momentum and could correct from here before moving up again. Therefore at this point of time fresh long trade should only be initiated if it moves and maintain above 10847.85 or on decline but not below 10693.66 because break below it will indicate that it can slip into correction mode.  

In view of the above observation it still looks good for up move, but in light of the double top   it would be safe to try long trade if it moves and maintain above 10847.85 or on decline but not below 10693.66 in any case, it could be slightly risky trade, mind you. Since it has made double top and if it fails to cross the same then it could correct from here also, 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.

Please be alert and vigilant particularly in long trade because the ongoing rally is purely liquidity driven and not backed by fundamentals, therefore possibility of ending this rally mischievously is pretty high. The bias is up as of now.         

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 10848 for some time with a stop loss of 10800.

Or

 Buy on decline near but not below 10693.66 if it holds this level for some time, with a stop loss of 10650. It could be a risky trade but worth trying.  

2. Sell near, if it does not move above 10848 in first two hours of trade with a stop loss of 10900. It could be a highly risky trade but worth trying.

Or

Sell if it moves and maintain below 10813.10 for reasonable period of time with a stop loss of 10860.

Or

Sell if it moves and maintain below 10693.66 for some time with a stop loss of 10730.

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.