CNX-NIFTY
Open-11276.90--High-11341.40—Low-11149.75—Close-11202.85 on 29.7.20203
Support:11171.55/11118/11108/11098.70/11056/10953/10894.05/10847.85/10813.10.
Resistance: 11239.80/11270/11341.40/11348/11429.85/11446.42/11495.20/11597.25.
Critical Points moving down:-11171.55---11157.67---11056.
Critical Points or range moving up: -11239.80---11270---11446.62---11597.25.
(Bold and underlined figures are most important)
It crossed its recent double top of 11238.10 & 11239.80 and critical point of 11270 with speed yesterday and with similar speed it has decisively broken these levels today which certainly showing fatigue at the higher levels, furthermore it had a rise for six straight week, therefore correction was imminent (see my post for 29.7.2020) and it happened today and if it slips below 11157.67 and sustain on the closing basis then correction may continue for some time and down move may accelerate else it could bounce back from here also. Moving down it may find support at 11113--- 11044---10952---10860---10746---10718 levels. Please note that staying below the double top of 11238.10 & 11239.80 and critical point of 11270 is not a good sign for the up momentum.
In view of the above observation the range for now is 11157---11270 and breakout on the
either side of the range will decide which way it will head, but in light of
today’s move it seems that chances of break down is quite possible. It is
therefore suggested to avoid long trade till it moves and sustain above 11270 on the closing basis. However
aggressive traders if they wish can try long trade near 11157 but not below it, but it could be a highly risky trade mind
you. Since it indicated weakness today therefore short trade can also be
attempted on the rise in the appropriate range or on the price breakdown for
taking advantage of possible corrective move or may be a rally breakdown. Safe traders should avoid long trade today.
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 11157 with a stop loss of 11100. It is for the aggressive traders
and could be a highly risky trade.
2. Sell if it does not move
above 11240 in first two hours of trade with a stop loss of 11300.
Or
Sell on the
rise near or within the range of 11270---11330 with a stop loss of 11360.
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.
No comments:
Post a Comment
Thank you for sharing your views.