CNX-NIFTY
Open-11225--High-11225—Low-11087.85—Close-11131.80 on 27.7.20203
Support:11118/11108/11098.70/11080/11056/10953/10894.05/10847.85/10813.10.
Resistance: 11134/11171.55/11239.80/11270/11311.60/11348/11446.42/11495.20.
Critical Points moving down:-11080.05---11056---10981---10894---10847.85---10813.10.
Critical Points or range moving up: - 11239.80---11270---11446.62.
(Bold and underlined figures are most important)
It opened on a positive note at 11225 and the open was the high also, but it slipped down immediately and made a low of 11087.85 after some time and finally closed with a loss of 62.35 points. It failed to cross its recent double top of 11238.10 & 11239.80 for the second consecutive day which shows sign of fatigue, furthermore last week was the sixth straight week of rise therefore it is in a highly vulnerable zone for correction and last but not the least it has broken its recent bottom of 11132.60 on the line chart today which indicate that it might have slipped into correction. But it would slip into real correction mode once it breaks 11080 levels and sustain below it on the closing basis, then the down slide may accelerate. Moving down it will find support at 10981---10894---10821---10722---10698 levels and any of these levels could be the possible correction completion points also. Similarly it will resume up momentum only if it moves and sustain above 11270 on the losing basis therefore till either side breakout happens it may oscillate in the range of 11270---11080.
In view of the above observation, it is moving in a range of 11270—11080 but since it has broken its recent bottom of 11132.60 on the line chart therefore it seems that the correction may have begun therefore for safe traders long trade should be avoided for now and can be tried once it closes above its double top of 11239.80 or if it closes above its critical point of 11270. However aggressive traders can try long trade near 11080 but not below it, but it could be a risky trade. Since correction looks imminent, so it is better to avoid long trade now instead short trade can be attempted on the rise at appropriate points or on the price breakdown for taking advantage of the correction or a possible rally breakdown. It is strongly suggested that traders should watch the market now and wait for the either side breakout to happen and then take a trading call.
I make it a point to mention in almost my all post that the upsurge in the entire world market is purely liquidity driven and completely defies fundamentals therefore it can end mischievously. So be extra alert and watchful in long trade.
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 11080 with a stop loss of 11050. It could be a risky trade.
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 11120.
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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.