A TECHNICAL VIEW ON CNX-NIFTY FOR –1.10.2020

 

CNX-NIFTY

 Open—11244.45--High—11295.40—Low—11184.55---Close-11247.55 on 30.9.2020.

Support:11181/11111.45/11056/10985.58/10882/10783/10676/10551/10328.50.                          

Resistance: 11289.90/11305.40/11341.40/11373.60/11383.55/11460.35/11507.65.

Critical Points moving down: 11181—11108---11027---10985---10911---11893--10783.43.

Critical Points moving up: -11292—11327---11384---11423---11455.

(Bold and underlined figures are most important)

As envisaged in my post for 28.9.2020, it seems that the pullback rally may be over as today was the 3^rd day of the rally and it has already hit the last possible rally exhaustion point of 11302 also (see my post for 28.9.2020, the actual high was 11305.40, it made on 29.9.2020), however if this rally still has the steam then it should move and sustain above 11327 on the closing basis then it could further extend the rally up to the level of 11384--11423---11455, chances of which looks less likely at this point of time. Therefore it seems a distinct possibility that the ongoing pullback move is over and down move should resume now. Please note that as of now sustained break below 11181(this figure can change) can push it into short corrective mode and sustained break below 11089 & 10783 levels on the closing basis can put it into deep correction mode. Moving down it may find support at 11108---11089---10985---10911---10893---10783.  

Since pullback rally seems to be over therefore long trade should be avoided for the day, however it can be tried by the aggressive traders, if it moves and maintain above 11327 for some time, but it could be a risky trade mind you. It is therefore strongly suggested for the day to try short trade on the rise or sell on the price breakdown for taking advantage of the down move.

 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 if it moves and maintain above 11327 for some time with a stop loss of 11280. It could be a risky trade.

2. Sell on the rise near or within the range of 11340---11384 with a stop loss of 11425. It could be a risky trade but worth trying.

Or

Sell if it falls below 11220 and maintain for some time with a stop loss of 11255. It could be a risky trade but worth trying.

Or

Sell if it falls below 11181 and maintain for some time with a stop loss of 11230.

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.