Saturday, 17 October 2020

A TECHNICAL VIEW ON CNX-NIFTY—19.10.2020

 

CNX-NIFTY

 Open—11727.40--High—11789.75—Low—11667.85---Close-11762.45 on 16.10.2020.

Support:11761/11694.85/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance: 11794.25/11802.65/11832.30/11929.60/11981.75/12000.35/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.

 (Bold and underlined figures are most important)

It did stage a recovery today and moved above one of its key point of 11733(figure can change) but to regain good strength and to resume the up move again it has to move above 11805(figure can change) and sustain on the closing basis else it may continue with the down move again, so watch out for a close above 11805. Moving down it will find support at 11694.85---11661---11618---11584---11549---11447---11270. If it breaks and sustain below 11447 on the closing basis then it may put the uptrend into potential danger and sustained break below 11270 on the closing basis will open the downside up to 10790 & 10551 which may please be noted. A close above 11805 could take it higher and then the upside target or resistance point could be at 11832.30---11929.60---12041.15---12068---12130---12178---12415---12430.50. The overall technical setup is still good for an up move but sustained close above 11805 is must. 

In view of the above observation for safe traders it is suggested to try long trade only once it closes above 11805, so long trade for the safe traders is ruled out for the day. But aggressive traders can try long trade if it maintain above 11765 & 11805 or on the decline but not below 11661, please note that both the trade could be risky one but long trade above 11805 could be relatively safe. The technical setup is o.k. but until and unless it closes above 11805 further downside is possible, therefore short trade can also be attempted on the rise at appropriate range as of now or on the price breakdown for taking advantage of down 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 11765 with a stop loss of 11725.It is for aggressive traders.

Or

Buy on decline near but not below 11661 with a stop loss of 11640.It is for aggressive traders. It could be a highly risky trade but worth trying.

2. Sell on the rise near or within the range of 11790---11835 with a stop loss of 11870. It could be a highly risky trade.

Or

Sell if it moves and maintain below 11660 for some time with a stop loss of 11690.

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.

 

 

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