A TECHNICAL VIEW ON CNX-NIFTY FOR --17.7.2020

CNX-NIFTY

Open-10706.20--High-10755.30—Low-10595.20—Close-10739.95 on 16.7.20203

 Support:10728.95/10676/10641/10583.65/10562.90/10553.15/10409.85/10328.50/10223/10194.50.

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

Critical Points moving down:-10728.95---10641---10583.65—10562.90---10553.15—10461.

Critical Points moving up:-10768---10813.10---10848---10896---10960—10990.

 (Bold and underlined figures are most important)  

It is in corrective up move now and above its critical points of 10641 & 10728.95 which is a positive sign and as long as it holds these points it could move up to 10768---10828---10848 levels and sustained close above  10828 could take it to near its recent top of 10894.05 or beyond. Similarly sustained break below 10728.95 & 10641 on the closing basis will resume the down move again and can take it down to 10626---10562---10461---10359---10334 levels. Please note that as of now 10728.95 is the benchmark point for it to continue the move up, but as mentioned in my post for 16.7.2020 it will regain up momentum only if it moves and sustain above 10813.10 & 10847.85 on the closing basis, which may please be noted.

In view of the above observation, it seems that it is still in corrective mode but the pullback rally is on and since it is above its critical points of 10641 & 10728.95 therefore those who wish to take advantage of this pullback rally can try long trade if it sustain above 10728.10 or 10641 but not below 10641 in any case. It would be relatively safe to try long trade above 10728.95 only. Short trade can also be attempted in the critical upside range or on the price breakdown for taking advantage of the possible corrective move.   

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 10728.95 & 10641 for some time with a stop loss of 10620. It could be a risky trade but worth trying.

2. Sell on the rise near or within the range of 10828---10860 with a stop loss of 10900. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 10728.95 for some time with a stop loss of 10780.  

Or

Sell if it maintains below 10641 for some time with a stop loss of 10695.

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.