A TECHNICAL VIEW ON CNX-NIFTY FOR –28.9.2020

 

CNX-NIFTY

 Open—11910.40--High—11072.60—Low—10854.85---Close-11050.25 on 25.9.2020.

Support:11027/10985.58/10882/10783/10676/10551/10328.50/10194.50/9970.80/9944.40.         

Resistance: 11056.55/11111.45/11185.15/11242.65/11341.40.

Critical Points moving down: 11027—10985---10840---10783.43---10670.

Critical Points moving up: -11107---11174---11210—11292—11302.

(Bold and underlined figures are most important)

As envisaged it gave a pullback move on 25.9.2020 the up move was strong then what was expected, therefore it may last for another 3-4 days at max, provided it moves and sustain above 11090 on the closing basis. Moving up it will face resistance at 11107---11174---11210---11292---11302 levels and this rally can end at any of these points or earlier also or sustained break below 10985 on the closing basis will signal the end of the pullback rally, which may please be noted. Today’s pullback move does not indicate that the down correction is over therefore traders should be alert in long trades.

In view of the above observation safe traders should avoid long trade till it gives visible sign of bottom formation, but aggressive traders can try long trade on decline but not below 10985 or if it moves and maintain above 11090 for some time. Please note that the pullback rallies are treacherous in nature and often ends abruptly trapping the traders on the wrong foot, therefore be careful in long trade. It is suggested to adopt sell on the rise strategy or sell on the price breakdown till clarity on bottom formation emerges.   

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 10985 but not below it with a stop loss of 10925.

Or

Buy if it moves and maintain above 11090 for some time with a stop loss of 11030.

2. Sell on the rise near or within the range of 11190---11210 with a stop loss of 11250. It could be a risky trade but worth trying.

Or

Sell if it falls below 10985 and maintain  for some time with a stop loss of 11060.

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.