A TECHNICAL VIEW ON CNX-NIFTY—28.10.2020

 

CNX-NIFTY

 Open—11807.10--High—11899.05—Low—11723---Close-11889.40 on 27.10.2020.

Support:11832.30/11803/11794.25/11775.75/11761/11733/11711.70/11694.85/11661/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                     

Resistance:11929.60/11981.75/12025.45/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.

 (Bold and underlined figures are most important)

As envisaged it bounced back sharply today from the trigger point of 11733 and closed near the high of the day and above the key points of 11733--- 11775.75---11803 & 11880, which is a positive sign, but this move was not strong enough to regain the desired up momentum and for that it has to move above its top of 11937.65---11971.05---12025.45 and sustain on the closing basis. Please note that if it fails to cross these points in next 1-2 trading session and break again the key points of 11880---11803---11775.75---11733 on the downside then it could witness sharp fall this time which may be kept in mind. Kindly note that to give some hope that it can regain the up momentum again it has to close reasonably above 11937.65 first and then gradually cross the other points too, else it will resume the down move again.

In view of the above observation for safe traders it is suggested to avoid long trade on decline for the day but can try long trade if it moves and maintain above 11940 for some time. However aggressive traders can try long trade if it moves and maintain above 11940 or on the decline at the appropriate points mentioned above with self-defined short stop losses with the help of support points mentioned above but not below 11767, buy on decline could be a risky trade for the day. Although it had a sharp rise today but lower top & bottom is still there on the line chart, so possibility of further down correction from here cannot be ruled out till it closes above 11937.65, therefore it is suggested to attempt short trade also either 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 11767 with a stop loss of 11700.It is for aggressive traders. It could be a highly risky trade.

Or

Buy if moves and maintains above 11940 for some time with a stop loss of 11880.It could be a risky trade but worth trying.

2. Sell on the rise near or within the range of 11980---12068 with a stop loss of 12110 It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it does not move above 11940 in first two hours of trade even   intraday with a stop loss of 11980. It could be risky trade but worth trying.

Or

Sell if it moves and maintains below 11767 for some time with a stop loss of 11815.

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.