A TECHNICAL VIEW ON CNX-NIFTY FOR –11.9.2020

 

CNX-NIFTY

 Open—11363.30--High—11464.05—Low—11327.40---Close-11449.25 on 10.9.2020.

Support:11447/11373.60/11325.85/11289.80/11269.52/11248/11111.45/11056/10882.                

Resistance: 11460.35/11584.95/11633/11694.85/11706.06/11761/11794.25.

Critical Points moving down: 11447---11418---11329---11289/11269.52---11248--11056.

Critical Points moving up: -11490--11507.65--11562---11650---11673—11761---11794.25.

(Bold and underlined figures are most important)

It opened with an up gap today and the gap it created is still there ,so if it makes an effort to fill the gap in next 3-4 days ,which is technically possible then it can come down to 11298 else  it may not fill the now. It has given some positive indication and show strength today as it has crossed its recent top of 11355.05 on the line chart and most importantly it has closed shade above its benchmark point of 11447 which is a good sign and if it sustain above it on the closing basis then this up move can last for few days off course with in between down moves after a reasonable rise else it may fizzle out. Moving up it will face resistance at 11490---11562---11651---11673 levels and if it is weak up rally then it can exhaust at any of these points or earlier but if it moves and sustain above 11673 on the closing basis then it could retest its recent high of 11794.25 or go beyond. Similarly moving down it will find support at 11417.84---11328.90 and sustained break below 11328.90 on the closing basis will signal the end of this pullback rally.  

 Since it has closed above its benchmark point of 11447 and if it sustain above it then long trade can be tried but not below it for sure, however aggressive traders can try long trade on decline also but not below 11328.90, but it could be a risky trade mind you. Although it gave positive sign today and indicate up move ahead but whether it will last or not will get confirmed in 1-2 days trading session, therefore short can also be attempted at appropriate price range or on the price breakdown for taking advantage of the possible down move or breakdown of the rally.

It is imperative to mention here that the ongoing surge in the Indian as well in the rest of the world stock market for the last few months is not at all fundamentally backed but purely liquidity driven which is concerning. In light of this instead of caution it seems that there is an irrational exuberance in the stock market now which is even more concerning. Please take my word that at this juncture if investors and traders do not exercise extreme caution and alertness particularly in the long trade then they are surely going to be trapped in coming days. One cannot time the correction but it seems that it is around the corner.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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 sustain above 11447 with a stop loss of 11400.

Or

Buy on decline near 11328.90 with a stop loss of 111265. It could be a risky trade.

2. Sell on the rise near or within the range of 11535---11565 with a stop loss of 11600. It could be a risky trade.

Or

Sell if it falls below 11447 and maintain below it for some time with a stop loss of 11490. It could be a risky trade but worth trying.

Or

Sell if it falls below 11270 and maintain for some time with a stop loss of 11340.

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.