A TECHNICAL VIEW ON CNX-NIFTY FOR—2.7.2020

CNX-NIFTY

 

Open-10323.80--High-10447.05—Low-10299.60—Close-10430.05 on 1.7.2020

 Support:10409.85/10328.50/10315/10302/10288/10267.35/10194.50/10172/10038/9970.80/9944.40/9889.05/ 9881.15/9700/9685.55/9584.50/9544.

Resistance:10447.05/10553.15/10583.65/10637.

Critical Points moving down:-10328.50---10315---10302—10267--10194.5--10168---10038—9944.40—9889.05--9881.15.

Critical Points moving up:-10409.85--10471—10584--10637.

(Bold and underlined figures are most important)  

It closed above its recent lower top of 10383 and intraday top of 10409.50 today and it has already been making higher bottom and the recent one is at 10302.10 therefore it is showing strength, so the ongoing up journey may continue as long as it holds its critical points of 10328.50 & 10315 and the recent closing bottom of 10302.10 as of now. Therefore buy on decline strategy can be adopted. Please note that if it moves and sustain above 10482 on the closing basis then it is likely to test or go beyond its recent high of 10553.15 and sustained break above 10583.65 can take it to much higher level. 

In view of the above observation it seems that it may continue the up move therefore long trade can be tried on decline but not below 10328.50 on the closing basis. Similarly short trade should also be attempted in the critical resistance range for taking advantage of correction.  

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. Short trade should also be attempted at critical points to take advantage of correction or may be a possible rally breakdown.

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 maintains above 10447 for some time with a stop loss of 10400.It could be a highly risky trade but worth trying.

Or

Buy on decline but not below 10328.50 with a stop loss of 10260. It could be a safe trade.

2.  Sell on the rise near or within the range of 10553—10600 with a stop loss of 10650. It could be a highly risky trade but worth trying.

Or

 Sell if it maintains below 10299 for some time with a stop loss of 10340.

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.