Commodities

Tuesday, 28 July 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR --29.7.2020

 CNX-NIFTY

Open-11154.10--High-11317.75—Low-11151.40—Close-11300.55 on 28.7.20203

 Support:11270/11239.80/11171.55/11118/11108/11098.70/11056/10953/10894.05/10847.85/10813.10.

Resistance: 11317.75/11348/11429.85/11446.42/11495.20/11597.25.

Critical Points moving down:-11270---11239.80---11171.55---11056.

Critical Points or range moving up: - 11446.62---11597.25.

 (Bold and underlined figures are most important)

It crossed its double top of 11238.10 & 11239.80 and critical point of 11270 today which is a good sign and indicate strength and if it holds the level of 11270 on the closing basis then it could move up to 11447 level and sustain close above it can take it near to its all time high of 12430.50 or beyond, however moving up it can have intermittent corrective move also which may please be noted.

Today's robust up move cleared the recent major hurdle for it therefore it is expected that the up momentum should continue. It is therefore suggested to try long trade on decline but not below 11240 or if it moves and maintain above 11318 for some time. It is important to mention here that since the ongoing week is the 7th week of rise as of now therefore it is still highly vulnerable for correction and if it falls below 11238 and sustain then it could correct but the deep correction will begin only if it moves below 11139.61 and sustain on the closing basis as of now. It is therefore   suggested to attempt short trade also on the price breakdown for taking advantage of possible corrective move or may be a rally breakdown. 

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 11240 with a stop loss of 11200.

Or

Buy if it moves and maintain above 11318 with a stop loss of 11250.

2. Sell if it moves and maintain below 11238 for some time with a stop loss of 11300.

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.

 

 


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