A TECHNICAL VIEW ON CNX-NIFTY FOR --15.7.2020

CNX-NIFTY

Open-10750.85--High-10755.65—Low-10562.90—Close-10607.35 on 14.7.20203

 Support:10583.65/10553.15/10409.85/10328.50/10223/10194.50.

Resistance:10637.15/10641.05/10676.55/10728.95/ 10813.10/10847.85/10894.05/10941.20/11090.

Critical Points moving down:-10626.82--10583.65--10553.15—10461.

Critical Points moving up:-10626.82---10641.05--10728.95---10813.10---10848---10896---10960—10990.

 (Bold and underlined figures are most important)  

 As expected correction set in today as it plunged down sharply and closed the day with a loss of 195.35 points. Furthermore it has decisively broken its critical point of 10768.05 & 10728.95 and if it remains below 10728.95 on the closing basis then the fall could deepen. Moving down it will find good support at 10583.65---10553.15—10461.72---10359.59---10334.41 levels and any of these could be the possible correction completion points also, but sustained break below 10583.65 on the closing basis may signal the end of the uptrend also and break below 10334.41 on the closing basis can take it down further, which may please be noted. 

 In view of the above observation, it has definitely slipped into the correction mode , therefore long trade should be avoided now and can only be tried if it gives visible indication of correction completion near the possible support points mentioned above or try long trade only after if it moves above 10728.95 and sustain on the closing basis. I would like to mention here that sustain break below 10583.65 on the closing basis  may reverse the uptrend, therefore long trade should be completely avoided below 10583.65 and can be tried only if it bounce back above it again and sustain on the closing basis or try it after a significant decline for a pullback move. But aggressive traders can try long trade near 10583.65 if it holds this level, but it could be a risky trade mind you. It is therefore suggested not to hurry for long trade initiation at this point of time and wait for the correction to end. The correction is on therefore short trade should be attempted on the rise at proper points or on the price breakdown for taking advantage of corrective move or a possible trend reversal.   

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. It has already entered into correction mode and may reverse the trend also in coming days. 

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 on decline near but not below 10583.65 if it holds this level for some time with a stop loss of 10530.  It is for the aggressive traders only, because it could be a highly risky trade.

Or

 Buy if it moves and maintain above 10728.95 if it holds this level for some time, with a stop loss of 10680. It is for the aggressive traders only, because it could be a risky trade today.

 

2. Sell on the rise near but not above 10728.95 with a stop loss of 10780. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 10583.65 for some time with a stop loss of 10640.

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.