A TECHNICAL VIEW ON CNX-NIFTY FOR –18.8.2020

 

CNX-NIFTY

 Open-11248.90--High-11267.10—Low-11144.50---Close-11247.10 on 17.8.20203

Support:11239.80/11171.55/11111.45/11056.55/10894.05/10882/10847.85/10583.65/10562.90.

Resistance:11270/11341.40/11378/11447.

Critical Points moving down: -11239.80---11182.27---11111.45---11056---10990---10940---10872----10725.

Critical Points moving up: -11239.80---11270---11341.40---11378---11447.

 (Bold and underlined figures are most important)

 It managed to close above its rising trend line which was at 11203 for the day and it is at 11225 for 18.8.2020, Please note that the trend line will be rising at faster pace as days goes by, therefore   to keep it above the trend line it has to move up faster in coming days else chances of breakdown would be there. Moving up it will face stiff resistance at 11270---11341.40---11378---11447 levels. Please note that despite various attempts it has not been able to sustain above the levels of 11270---11341.40---11378 on the closing basis in the recent past, so it is very important hurdle range which it has to cross to keep the up momentum going and finally it will catch up real strong up momentum once it crosses 11447 levels and sustain above it on the closing basis then it could retest its previous top of 12430.50 or may go beyond it. The overall technical setup is o.k. for the up move but trend line faster rise is posing some threat to the uptrend as of now.

In view of the above observation, since it has bounced back above the trend line today and if it keeps on respecting it then this up move should continue, chances of which looks slightly slim at this point of time. Therefore, for safe trader’s long trade can only be tried if it moves and sustain above 11270 on the closing basis. However aggressive traders can try long trade if it maintains above 11270 during the day for reasonable period of time or buy on decline near but not below 11225. 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.

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 11225 but not below it with a stop loss of 11170.

Or

Buy if it moves and maintains above 11270 for some time with a stop loss of 11210. It could be a risky trade.

2. Sell on the rise near or within the range of 11350---11420 with a stop loss of 11470.It could be a risky trade but worth trying.

Or

Sell if it falls below 11170 and maintain below it for some time with a stop loss of 11250. 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.