A TECHNICAL VIEW ON CNX-NIFTY FOR –3.8.2020

CNX-NIFTY

Open-11139.50--High-11150.40—Low-11026.65—Close-11073.45 on 31.7.20203

Support:11056/11026.65/10950/10894.05/10847.85/10813.10/.

Resistance: 11098.70/11101/11118/11108/11147/11171.55/11239.80/11270/11341.40/11348.

Critical Points moving down:-11026.65--10952---10860---10746---10718.

Critical Points moving up: -11101---11114---11171.55---11239.80---11270---11341.40.

 (Bold and underlined figures are most important)

The correction continued today and it closed with a meagre loss of 28.70 points. It seems that correction may last for few more days. The trading range as of now is between 10952---10975---11101----11158(these figure can change with the price movement) and if does not break recent low of 11026.65 and close above 11101 then it will give an indication that it could stage a relief rally but only sustained close above 11158 will indicate that the up move may show some strength. Moving up it will face stiff resistance at 11171.55---11240---11270 and sustained close above 11270 will only ensure the strong up momentum. Similarly sustained close below 10952 should accelerate the down move and moving down it will find support at 10894---10847---10746---10718.     

In view of the above observation, it is suggested to avoid long trade now and should only be tried it moves and sustain above 11158 on the closing basis, but aggressive traders can try it on decline also near 10975---10952 but not below 10952 for a pullback move. Since it is in correction mode, it is suggested to adopt sell on the rise strategy or sell on the price breakdown for corrective move or may be a rally breakdown advantage.

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 10970—10950 but not below 10950 with a stop loss of 10930. It could be a highly risky trade but worth trying.

2. Sell if it moves below 11026 with a stop loss of 11080 for a target of 10952—10880---10860

Or

Sell if it moves and maintain below 10952 for some time with a stop loss of 11035 for a target of 10860---10825---10746.

Sell on the rise near or within the range of 11150---11200 with a stop loss of 11240.

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.