A TECHNICAL VIEW ON CNX-NIFTY FOR –4.8.2020

CNX-NIFTY

Open-11057.55--High-11058.05—Low-10882.25—Close-10891.60 on 3.8.20203

Support:10894.05/10847.85/10676.55/10583.65/10562.90/10553.15.

Resistance: 10991/11056.55/11090.30/11114/11118/11158/11171.55/11239.80/11270.

Critical Points moving down:-10880---10860---10746---10718.

Critical Points moving up: -10955---10991----11114---11171.55---11239.80---11270.

 (Bold and underlined figures are most important)

The correction is on and it seems that it is likely to continue for few more days. It has broken its critical point of 10976 & 10952 therefore down move should accelerate and going down it will find good support at 10880---10860---10847---10790---10746---10718 levels and it could bounce back from any of these points but if it moves and sustain below 10718 level on the closing basis then down move can further deepen and it could test its critical support range 10583.65---10553 and most importantly if it breaks and sustain below 10583.65 on the closing basis then the ongoing uptrend will be in potential danger, therefore the said range is a make or break range, which may please be noted.

Since it is in correction mode and chances of it deepening is pretty bright at this point of time, therefore long trade should be avoided now and can only be tried once it moves above 10991 (it may change with the price movement) and sustain on the closing basis as of now. In light of the present situation only sell trade is suggested either on the rise or on the price breakdown for taking advantage of the corrective move or may be a rally breakdown advantage. Last but not the least if it fails to move above 10991 on the closing basis in next 3-4 trading session then down move is certainly going to accelerate.

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. Sell if it moves below 10880 with a stop loss of 10930 for a target of 10860—10847---10790---10746---10718.

Or

Sell on the rise near or within the range of 10980---11020 with a stop loss of 11050.

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.