CNX-NIFTY
Open-10946.65--High-11112.25—Low-10908.10—Close-11095.25 on 4.8.20203
Support:11090/11056.55/10991/10894.05/10882/10847.85/10676.55/10583.65/10562.90.
Resistance:11114/11118/11158/11171.55/11239.80/11270/11341.40/11447.
Critical Points moving down:-11056---10991----10950---10880---10860---10746---10718.
Critical Points moving up: -11114---11158----11171.55---11239.80---11270---11341---11447.
(Bold and underlined figures are most important)
It bounced back robustly from its first support point of 10880(see my post for 4.8.2020) and crossed its critical point of 10991(it can change) decisively and if it holds this mark it can move up further. Moving up it will face resistance at 11114---11158---11171---11240---11250---11341 levels and if it moves and maintain above 11158 on the closing basis then the up move may gather strong momentum. It is important to mention here that after yesterday’s sharp down move today’s up move some what seems unexpected and looks a well orchestrated one and if it is so then this move should fizzle out in next 2-3 days time, else the up move will continue with in between down correction..
In view of the above observation long trade can be tried on decline near but not below 10991 or if it maintains above 11114 Or 11158 but with extreme caution and alertness because today’s up may end abruptly if it does not move above 11158 and sustain on the closing basis. If it gives an indication of up move exhaustion then short trade can also be attempted at the appropriate points for taking advantage of the corrective move or may be for 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
but not below 10991 with a stop loss of 10950.
Or
Buy if it
moves and maintain above 11114 for some time with a stop loss of 11080.
2. Sell if it moves below 10950
with a stop loss of 11000.
Or
Sell near if it
does not move beyond 11158 in first two hours of trade with a stop loss of
11175. It could be a risky trade but worth trying.
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.