A TECHNICAL VIEW ON CNX-NIFTY FOR --13.7.2020

CNX-NIFTY

Open-10764.10--High-10819.40—Low-10713—Close-10768.05 on 10.7.2020

 Support:10705.75/10693.66/10670.25/10637.15/10583.65/10553.15/10409.85/10328.50/10223/10194.50.

Resistance: 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 opened with a negative bias and crossed its vital resistance point of 10813.10 during the day and tried to go towards its recent top of 10847.85 on the bar chart, but could not cross it and slipped down and closed below 10813.10 with a loss of 45.40 points. It is still holding its recent bottom of 10705.15 on the line chart and its critical point of 10693.66 and as long as it holds the above levels it can still move up else it could go in for correction. It took two attempts to cross its recent top of 10847.85 but failed, so if does not cross it in next 2-3 days then it may slip into correction mode, chances of which look possible. It will go into correction mode if it sustain below 10693.66 on the closing basis and break below 10583.65 & 10553.15 on the closing basis will accelerate the fall.

In view of the above observation it still looks good for up move, but in light of last two days price movement it would be safe to try long trade only 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 at this point of time, which may please be noted. It is exhibiting slight shakiness at the recent top area of 10837--10848, therefore it seems that it is likely to correct. 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. 

2. Sell near, if it does not move above 10848 for a reasonable period of time 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 10770.

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.