A TECHNICAL VIEW ON CNX-NIFTY FOR –19.8.2020

 

CNX-NIFTY

 Open-11259.80--High-11401.70—Low-11253.15---Close-11385.35 on 18.8.2020

Support:11378/11341.40/11270/11239.80/11171.55/11111.45/11056.55/10894.05/10882..

Resistance: 11447/11495.20/11614.50/11694.85/11706.65/11760.20/11832.30/11856.15..

Critical Points moving down: -11378---11341.40---11270---11239.80.

Critical Points moving up: -11447---11474----11536---11626---11798.

 (Bold and underlined figures are most important)

It gave a robust rise today and finally crossed its three major resistance points of 11270---11341.40---11378 on the closing basis, which is an extremely positive sign, now there is only last major hurdle at 11447 is left and once it moves above it and sustain on the closing basis then it could see much bigger rise off course with intermittent correction. Looking at today’s move it seems poised to cross the last major hurdle of 11447 soon. Moving up it will face resistance at 11474---11536----11626---11800. Similarly moving down the critical points would be 11341.40---11321---11290 and the key point for the day is 11290, so close below it may not be good for the continuation of the ongoing up move.

In view of the above observation long call can be tried on decline at appropriate points but not below 11290 or can be tried if it moves above 11402 and sustain for some time. Short trade should be avoided in general for the day but can be attempted after a reasonable rise for taking advantage of possible corrective move or on the price breakdown for taking possible rally exhaustion 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 at the appropriate points but not below 11290 with a stop loss of 11260.

Or

Buy if it moves and maintains above 11402 for some time with a stop loss of 11340. It could be a risky trade.

2. Sell on the rise near or within the range of 11475---11540 with a stop loss of 11580.It could be a risky trade but worth trying.

Or

Sell if it falls below 11270 and maintain below it for some time with a stop loss of 11325. 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.