CNX-NIFTY
Open-11353.30--High-11366.25—Low-1111.45---Close-11178.40 on 14.8.20203
Support:11171.55/11111.45/11056.55/10894.05/10882/10847.85/10583.65/10562.90.
Resistance:11239.80/11270/11341.40/11378/11447.
Critical Points
moving down: -11111.45---11056---10990---10940---10872----10725.
Critical Points moving
up: -11182.27---11239.80---11270---11341.40---11378---11447.
(Bold and underlined figures are most important)
As envisaged, since
it could not cross the critical resistance points of 11341.40--- 11378 on the closing basis despite few attempts,
therefore it plunged down sharply today and closed with a loss of 112.05 points. Furthermore it has
broken its rising trend line drawn from the bottom of 7511.10(made on 24.3.2020) connecting the bottom of 8806.75(made on 18.5.2020) which is a
bad sign. Please note that in last four and half months it has broken the trend
line for the first time yesterday, therefore it is all the more important and if does not bounce back above it again in
next 1-2 trading session then it
could potentially threaten the uptrend. The trend line for 17.8.2020 is at 11230 and
for 18.8.2020 at 11258. Please note that correcting today it has broken three
critical points 11270(fixed)---11257.64—11182.27(both
the figures can change) on the closing basis and if it remains below these
points then correction could deepen and moving down it may find support at 11111.45---11056---10990---10940---10872----10725
levels and it could bounce back from any
of these points but if it sustain below 10990
& 10940(figures can change)
as of now on the closing basis then the down move is expected to accelerate.
In view of the above observation, it seems that it has slipped into the correction mode but it has to be seen how it behaves in next 2-3 days to ascertain the intensity of correction, it may bounce back too. In light of today’s move long trade should be avoided now and can only be tried if it moves and sustain above 11270 on the closing basis or buy on decline near or within the range of 10990—10940 but not below 10940. Short trade can be attempted on the rise in the appropriate range or on the price breakdown to take advantage of the correction or may be for a rally breakdown advantage because it is supposedly in the correction mode now.
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
or within the range of 10990—10940 but not below 10940 with a stop loss of 11860.
2. Sell on the rise near or
within the range of 11270---11378 with a stop loss of 11410.It could be a risky
trade but worth trying.
Or
Sell if it
maintains below 11110 or fall below it at any point of time during the day and
stay below it for some time with a stop loss of 11160. 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.