Monday, 19 October 2020

A TECHNICAL VIEW ON CNX-NIFTY—20.10.2020

 

CNX-NIFTY

 Open—11879.20--High—11898.25—Low—11820.40---Close-11873.05 on 19.10.2020.

Support:11832.30/11802.65/11794.25/11761/11694.85/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance: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 continued the up move today and crossed its 2nd key point of 11802 which indicates good strength; therefore it seems that the up move may be on track again. But the significant point here is that it has opened with an up gap today and if it makes an attempt to fill the gap in next 3-4 trading session which is technically possible then it can come down to 11789 levels, which may be kept in mind. It is needless to mention here that to keep the up momentum going it has to remain above its key point of 11802 & 11733(the figure can with significant price movement) break below these points could push it back into corrective mode which may please be noted. Moving down it will find support at 11832.30---11794---11694.85---11661---11618---11584---11549---11447---11270. The overall chart setup is strong enough as of now therefore chances of moving up from here looks better and going up the upside target or resistance point could be at 11929.60---12041.15---12068---12130---12178---12415---12430.50.

In view of the above observation for safe traders it is suggested to try long trade on decline but not below 11802 or try if it moves and maintain above 11900 for some time. However aggressive traders can try long trade if it maintain above 11900 or on the decline but not below 11733. Please note that trying long call on decline may be a risky affair for the day but can be tried because of technical strength. Since it seems that it has picked up the up momentum again therefore short trade in general should be avoided. But short trade can also be attempted after a reasonable rise or on the price breakdown for taking advantage of possible intraday 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 11900 with a stop loss of 11860. It could be a risky trade but worth trying.

Or

Buy on decline near but not below 11733 with a stop loss of 11690.It is for aggressive traders. It could be a highly risky trade but worth trying.

Or

Buy on decline near but not below 11805 with a stop loss of 11775.It is for safe traders. It could be a highly risky trade but worth trying.

2. Sell on the rise near or within the range of 11985---12067 with a stop loss of 12110 It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintain below 11733 for some time with a stop loss of 11810. It could be risky trade but worth trying.

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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.