A TECHNICAL VIEW ON CNX-NIFTY FOR --20.7.2020

CNX-NIFTY

Open-10752--High-10933.45—Low-10749.65—Close-10901.70 on 17.7.20203

 Support:10894.05/10847.85/10813.10/10676/10630/10583.65/10562.90/10553.15/.

Resistance: 10941.20/10990/11090/11118/11134/11171.55/11269.

Critical Points moving down:-10894.05---10847.85---10813.10---10676---10583.65---10562.90.

Critical Points or range moving up:-10940-988---11090-134---11171.55—11269.52---11446.62.

 (Bold and underlined figures are most important)

It has reversed the trend by crossing all its important resistance points as mentioned in my earlier post and resumed the up move again today. It has exhibited extraordinary strength  which indicates that it could further move up from here,  but the up journey from here may  be rocky as moving up  it will face very stiff resistance  range  and points  at 10940-990---11100-134---11171.15---11269---11446.62. Please note that the range of 10940---11269 is highly vulnerable zone for it and it may possibly end this rally within this range or earlier also and it seems very much likely to happen as of now. However  in case if it moves above 11446.62 and sustain on the closing basis then it could retest it’s all time high of 12430.50 or go beyond, chances of which looks slim at this point of time.

In view of the above observation corrective mode reversed and uptrend resumed today, so long trade can be tried if it moves and maintain above 10934 or on decline but not below 10846, but since it will face huge resistance from the above mentioned range and points, therefore be extremely cautious and careful in the long trade in the range of 10940---11269. I strongly apprehend that it could top out any time next week starting from 20.7.2020 in the mentioned range and downtrend may begin. Therefore short trade should also be attempted in the desired range or on the price breakdown for taking advantage of correction 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.

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 10934 for some time with a stop loss of 10880.

Or

Buy on decline near but not below 10846 with a stop loss of 10800.

2. Sell on the rise near or within the range of 11171---11269 with a stop loss of 11320. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 10846 for some time with a stop loss of 10935.

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.