A TECHNICAL VIEW ON CNX-NIFTY FOR –7.8.2020

CNX-NIFTY

Open-11185.70--High-11256.80—Low-11127.30.05—Close-11200.15 on 6.8.20203

Support:11171.55/11158/11114/11056.55/10991/10894.05/10882/10847.85/10676.55/10583.65/10562.90.

Resistance:11239.80/11270/11341.40/11378/11447.

Critical Points moving down:-11171.55---11158---11114---11056---10991

Critical Points moving up: -11239.80---11270---11341---11378---11447.

 (Bold and underlined figures are most important)

It closed above its critical point of 11158 today and if it holds this level it could continue the up move off with intermittent correction, but it will pick up strong up momentum only if it moves and sustain above 11240 & 11270 on the closing basis which may please be noted. Apart from these two points moving up it will face stiff resistance at 11341----11378---11447 levels and sustained close above 11447 level only can take it higher to near its all time high of 12430.50 or beyond. Looking at last 2-3 days trading movement, I still feel that holding its critical level of 11158 looks slightly dicey at this point of time, so watch out. Please note that sustained break below this level can push it into corrective mode again.

Since it closed above its critical point of 11158, therefore long trade can be tried on decline but not below 11158 in any case. Short trade can also be attempted if it breaks 11158 levels and sustain below it or attempt it after a reasonable rise in the appropriate range for taking advantage of the possible corrective move.

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 but not below 11158 with a stop loss of 11120.

2. Sell on the rise near or within the range of 11280---11330 with a stop loss of 11380.

Or

Sell if it maintains below 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 11210. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 11120 for some time with a stop loss of 11175.

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.