A TECHNICAL VIEW ON CNX-NIFTY FOR --27.7.2020

CNX-NIFTY

Open-11149.95--High-11225.40—Low-11090.30—Close-11194.15 on 24.7.20203

 Support:11171.55/11133/11118/11108/11098.70/11056/10953/10894.05/10847.85/10813.10.

Resistance: 11239.80/11270/11311.60/11348/11446.42/11495.20.

Critical Points moving down:-11080.05---10980---10894---10847.85---10813.10.

Critical Points or range moving up:-11239.80---11270---11446.62.

 (Bold and underlined figures are most important)

It clocked a gain of 292.45 points in the preceding week. It has been rising for six consecutive week showing good strength and the up move may continue but intermittent correction is not ruled out. Moving up it will face very stiff resistance at 11270----11447 levels, sustained break above 11270 on the closing basis will open the upside up to 11447 and sustained close above this mark can take it to its all time high of 12430.50 or beyond. Similarly moving down it will find support at 11080.05---10981.22---10894---10821---10723---10698 levels, sustained break below 11080.05(this figure can change) as of now on the closing basis will push it into correction mode and going down any of levels mentioned above could be a correction completion point also which may please be noted. 

Technically it is on a strong footing, so look good for further up move, therefore long trade can be tried on decline but not below 11080.05 or if it moves and maintains above 11240, but it could be a risky trade because 11270 level would be a very stiff resistance and it looks tough to cross this mark as of now. Long traders should be very vigilant and cautious in their trade because it has been rising for the sixth straight week therefore it is vulnerable for correction also and it could happen anytime soon. Since correction is a distinct possibility therefore short trade should also be attempted in the appropriate range or on the price breakdown for taking advantage of correction or a possible rally breakdown.

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 11240 for some time with a stop loss of 11180. It could be a risky trade.

Or

Buy on decline near but not below 11080 with a stop loss of 11050.

2. Sell on the rise near or within the range of 11270---11300 with a stop loss of 11340. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 11050 for some time with a stop loss of 11110.

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.