A TECHNICAL VIEW ON CNX-NIFTY FOR --23.7.2020

CNX-NIFTY

Open-11231.30--High-11238.10—Low-11056.55—Close-11132.60 on 22.7.20203

 Support:11133/11118/11108/11098.70/10894.05/10847.85/10813.10/10676/10630/10583.65/10562.90/10553.15/.

Resistance: 11171.55/11238.10/11270/11311.60/11446.42/11495.20.

Critical Points moving down:-11078.75---10980---10894---10847.85---10813.10.

Critical Points or range moving up:-11171.55---11270---11446.62.

 (Bold and underlined figures are most important)

It opened with an up gap today but filled the gap during the day and closed with a small loss of 29.65 points. It is important to mention here that the up gap it created on 20^th & 21^st July-2020 are still there and if makes an effort to fill those gaps in next 3-4 days which is technically possible, then it could come down to 10934 level. It corrected today but technically it is looking good and could still move up further. Moving up it will face very stiff resistance at 11171.55---11270---11447. Today it came pretty close to 11270 levels but could not sustain and reacted sharply to close below 11171.55 also. Please note that sustained close above 11270 can take it to 11447 levels and sustained close 11447 can take it to its all time top of 12430.50 or beyond. Similarly moving down it will find support at 11078.75---10980---10894---10847.85---10813.10 levels, sustained break below 11078.75(it can change) on the closing basis can push it for corrective move again.

I would like to reiterate here that 10940—11270 is a vulnerable zone (see my post for 20.7.2020), therefore it has to move and sustain above 11270 on the closing basis for the up momentum to continue and if it fails to do so then it could correct sharply. 

It gave a jittery feeling today as it plunged down from near the important point of 11270; therefore it may behave in a weak manner on 23.7.2020 also. But since it is good on technical footing therefore long trades can be tried on decline but not below 11078.75 or try if it maintain above 11171.55, but if it gives a signal to close below 11078.75 then square off the long trade in any case. I still apprehend that it could top out around 11270 or slightly above for the time being, 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 11171.55 for some time with a stop loss of 11120.

Or

Buy on decline near but not below 11078.75 with a stop loss of 11030.

2. Sell on the rise near or within the range of 11240---11280 with a stop loss of 11320. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 11049 for some time with a stop loss of 11140.

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.