A TECHNICAL VIEW ON CNX-NIFTY—15.10.2020

 

CNX-NIFTY

 Open—11917.40--High—11997.20—Low—11822.15---Close-11971.05 on 14.10.2020.

Support:11929.60/11832.30/11802.65/11794.25/11760/11694.85/11549/11490.75/11447.           

Resistance: 11981.75/12000.35/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.

 (Bold and underlined figures are most important)

Technically it has been exhibiting tremendous strength and as envisaged in my post for 12.10.2020 it did correct intraday today but did not break the key point of 11805 and in the late afternoon it sharply bounced back to close near the high of the day. Please note that it has had 10 days straight rise, intraday correction won’t help so it is still vulnerable for a correction on the closing basis to make it strong and good for further sustainable rise and it has to happen anytime may be on 15.10.2020 or few days later, but sooner the better. Moving down 11805 & 11731(figures can change every time it makes a recent new high) will be the key points sustained break below 11805 will be an alert point and sustained close below 11731 may push it into deep correction. Going down it may find good support at 11618---11551---11447, it is important to mention here that if it breaks and sustain below 11447 on the closing basis then it may put the uptrend into potential danger. Similarly moving up the upside target or resistance points could be at 12068---12130---12178---12415---12430.50. The bias is hugely positive as of now.

In view of the above observation safe traders should avoid long trade on decline for the day but it can be tried if it moves and maintain above 11974 but aggressive traders can try long trade on decline but not below 11939. Since it is in strong uptrend therefore short trade is a avoid in general but in light of vertical rise for ten days, so correction on the closing basis looks imminent and it can happen anytime soon so short trade can also be attempted on the rise in the appropriate range or on the price breakdown for taking advantage of a possible corrective move. I once again repeat that the overall bias is highly bullish but be careful in the long trade at this point of time because of the vertical rise it had without closing basis correction.

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 11974 with a stop loss of 11930.It is for safe traders. It could be a risky trade.

Or

Buy on decline near but not below 11939 with a stop loss of 11900.It is for aggressive traders. It could be a risky trade but worth trying.

 

2. Sell on the rise near or within the range of 12090---12150 with a stop loss of 12180. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintain below 11900 for some time with a stop loss of 11945. It could be a highly risky trade.

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.