A TECHNICAL VIEW ON CNX-NIFTY FOR –10.8.2020

 

CNX-NIFTY

Open-11186.65--High-11231.90—Low-11142.05—Close-11214.05 on 7.8.20203

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 is still above its important point of 11158(it can change) but yet to move above its critical point or the acceleration point of 11240 & 11270. Please note that it will pick up momentum once it closes above 11270 and sustain on the closing basis. Therefore the short trading range for now is between 11158----11270 and the broad trading range would be 11158---11378---11447.It is important to mention here that in the recent past it has tried to cross its critical point of11240---11270 many times but failed, so if it has the strength it should cross these points in next 3-4 trading session else chances of breaking important point of 11158 will enhance and break below this mark can push it back into the correction mode. Technical setup looks o.k. for the up move as of now.   

In view of the above observation long trade can be tried on decline but not below 11158 or can be tried if it moves and maintain at least above 11240 for some time. Short trade can also be attempted if it breaks 11158 levels and sustain below it for some time 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 11130.

Or

Buy if it moves and maintain above 11240 for some time with a stop loss of 11205.It could be a risky trade.

2. Sell on the rise near or within the range of 11300---11350 with a stop loss of 11390.It could be a risky trade but worth trying.

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 11220. 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 favorable 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.