CNX-NIFTY
Open-11155.75--High-11225.65—Low-11064.05—Close-11101.65 on 5.8.20203
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 opened with an up gap at 11155.75 and made a high of 11225.60 and then plunged down sharply and made a low of 11064.05 and finally closed with a small gain of 6.40 points. Today’s move indicate that yesterday strong up move was a well-engineered one because had it been a genuine move then it would have seen a good follow on up move today on the closing basis, therefore todays move somewhat shows inherent weakness in it. However it is moving in a range of 10991---11158---11240 now and as long as it holds 10991 on the closing basis it could oscillate in the said range, only sustained close above 11158 will indicate that it could move up in a steady manner but it will pick up strong up momentum only if it moves and maintain above 11240 & 11270 on the closing basis, which seems less likely to happen as of now. Similarly sustained break below 10991 may accelerate the down slide.
In view of the above observation the present up move it not giving enough confidence because it is not sustaining above its critical points on the closing basis, but it has not given an apparent weak indication either, therefore long trade can only be tried if it maintains above 11158 on the closing basis. It means long trade is a complete avoid for the day. Since price movement is exhibiting weakness and the erratic and volatile move in it may end the up rally at any time, therefore till it closes above 11158 short trade can be attempted on the rise in the appropriate range or on the price breakdown for taking advantage of corrective move or may be for a possible 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. Sell on the rise near or
within the range of 11240---11300 with a stop loss of 11360.
Or
Sell near if
it does not move beyond 11158 or fall below it at any point of time during the
day and stay below it for some time with a stop loss of 11190. It could be a
risky trade but worth trying.
Or
Sell if it
moves and maintain below 11056 for some time with a stop loss of 11115.
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.