A TECHNICAL VIEW ON CNX-NIFTY FOR –11.8.2020

 

CNX-NIFTY

Open-11270.25--High-11337.30—Low-11238—Close-11270.15 on 10.8.20203

Support:11270/11239.80/11171.55/11158/11114/11056.55/10991/10894.05/10882/10847.85/10676.55/10583.65/10562.90.

Resistance:11270/11341.40/11378/11447.

Critical Points moving down: -11270----11239.80---11171.55---11158.

Critical Points moving up: -11341.40---11378---11447.

 (Bold and underlined figures are most important)

It went near its recent high of 11341 today, but could not cross it and slipped down but the good thing is that it has closed shade above its critical point of 11270 and if it sustain above it on the closing basis, then it could possibly hit the level of 11447. Moving up to the stated level it could face resistance at 11341.40--- 11378 levels but if it manages to hold 11270 mark then it will clear the said resistances levels in all likelihood. It is on the sound technical footing for now therefore it seems that the further up move is ahead, off course with intermittent correction.

In view of the above observation long trade can be tried now or on decline but not below 11240. Short trade can also be attempted if it breaks 11230 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. Please note that overall it is buy on the decline market for now but since 11270—11447 is a make or break range, hence shot trade is suggested. One should be extremely cautious and alert in both side of trades in this range.

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 11240 with a stop loss of 11220.

Or

Buy if it maintains above 11270 with a stop loss of 11230.

2. Sell on the rise near or within the range of 11380---11420 with a stop loss of 11470.It could be a risky trade but worth trying.

Or

Sell if it maintains below 11230 or fall below it at any point of time during the day and stay below it for some time with a stop loss of 11280. 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

suranank@gmail.com

Mobile—8240951127/9831313654.