A TECHNICAL VIEW ON CNX-NIFTY—27.10.2020

 

CNX-NIFTY

 Open—11937.40--High—11942.85—Low—11711.70---Close-11767.75 on 26.10.2020.

Support:11761/11733/11694.85/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                     

Resistance:11775.75/11794.25/11802.65/11805//11832.30/11929.60/11981.75/12025.45/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.

 (Bold and underlined figures are most important)

It did move above 11940 today immediately after the open but could not sustain above it even for a minute and steadily moved down during the day and made a low of 11711.70 for the day, it closed below its key points of 11880 & 11775 which is a weak sign, furthermore it has made lower top & bottom on the line chart and also broken its recent bottom on the bar chart on the closing basis, which is tremendously weak sign and indicate further fall may be ahead, but the silver lining is that it  managed to hold the last trigger point of 11733 for getting into the deep correction mode. Please note that if it sustain below 11805(this figure can change) on the closing basis then it is likely to break 11733 also in coming days and then it may go in for a sharp fall in coming days. Similarly if it sustain above 11805 on the closing basis it will give some glimmer of hope that it can move up but it will pick up the momentum only once it closes above 11937.65---11971.05---12025.45 as of now. It is important to mention here that if it does not move above these points in next 1-2 trading session then the correction may deepen, so watch out.

Moving down it will find support at 11733---11694.85---11661---11618---11584---11549---11447---11407---11270.  (Sustained break below 11447 on the closing basis will be a potential threat for the uptrend, which may please be noted)

Moving up the upside target or the resistance points could be at 11794.25---11805---11832---11937.65---11971.05--12025.45

In view of the above observation it is suggested to avoid long trade till clarity on correction completion emerges. However aggressive traders can try long trade if it maintain above 11733 or on the sharp decline at the appropriate points mentioned above with self-defined short stop losses with the help of support points mentioned above but not below 11447. Please note that trying long trade on decline may be a risky affair for now. Since it has made lower top & bottom on the line chart and broken recent bottom on the bar chart, so possibility of further down correction from here is very strong, therefore  it is suggested to adopt sell on the rise at the appropriate range or on the price breakdown for taking advantage of short or may be long 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 on decline but not below 11733 with a stop loss of 11700.It is for aggressive traders. It could be a highly risky trade.

Or

Buy on sharp decline at appropriate points with self-defined short stop losses but not below 11447 with a stop loss of 11400.

2. Sell on the rise near or within the range of 11870---11930 with a stop loss of 11980 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 11820. 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 favorable 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.