A TECHNICAL VIEW ON CNX-NIFTY FOR --14.7.2020

CNX-NIFTY

Open-10851.85--High-10894.05—Low-10756.05—Close-10802.70 on 10.7.20203

 Support:10768.05/10728.95/10676.55/10637.15/10583.65/10553.15/10409.85/10328.50/10223/10194.50.

Resistance: 10813.10/10847.85/10894.05/10941.20/11090/11118.10/11270.

Critical Points moving down:-10768.05---10728.95--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 an up gap at 10851.85 and went up further and made an intraday high of 10894.05 and thereafter lost the momentum and started moving down and made a low of 10756.05 and ended the day at 10802.70 with a gain of 34.65 points. Although it went past its critical point of 10813.10 & 10847.85 intraday but could not sustain above it on the closing basis which indicates some weakness, but it is still making higher top and bottom, therefore as long as it holds 10768.05 & 10728.95(this figure may change) on the closing basis it could still continue up move. But it will gain up momentum only if it gives sustain close above its critical point of 10813.10 & 10847.85. But looking at today’s price movement the up journey seems slightly difficult. Please note that break below 10768.05 will indicate the ongoing up move can halt and sustained break below 10728.95 on the closing basis will confirm that it has slipped into correction mode. Moving down in correction it will find good support at 10626.62—10583.65—10553.15---10461.72---10334.41 levels and any of these could be the possible correction completion points also, which may please be noted. Similarly moving up it will find tough resistance at 10896----10940---10990---11108---11279 levels.

In view of the above observation, it seems that correction may be round the corner therefore, for safe traders it is suggested to avoid long trade today and should try it only after it closes above its critical point of 10813.10 & 10847.85, long trade on decline should also be avoided today. However aggressive trade can try long trade above 10813.10& 10847.85 or on decline but not below 10728.95 in any case, but it could be a risky trade mind you. In light of today’s move correction looks imminent therefore short trade should be attempted on the rise near or within the critical range or on the price breakdown for taking advantage of corrective move or a possible rally breakdown advantage.   

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 10813.10 & 10848 for some time with a stop loss of 10780.  It is for aggressive traders only, because it could be a risky trade today.

Or

 Buy on decline near but not below 10728.95 if it holds this level for some time, with a stop loss of 10680. It is for aggressive traders only, because it could be a risky trade today.

 

2. Sell on the rise near or within the range of 10870---10910 with a stop loss of 10945. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 10728.95 with a stop loss of 10815.

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.