A TECHNICAL VIEW ON CNX-NIFTY—29.10.2020

 

CNX-NIFTY

 Open—11922.60--High—11929.40—Low—11684.85---Close-11729.60 on 28.10.2020.

Support:11684.85/11661/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                     

Resistance:11733/11761/11775.75/11794.25/11803/11832.30/11929.60/11981.75/12025.45/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.

 (Bold and underlined figures are most important)

As apprehended it could not sustain above its key points of 11880---11803---11775.75 & 11733 and since it has closed below the trigger point of 11733 also so it has definitely slipped into the correction mode, therefore it is suggested to avoid long trade till it bounces back at least above 11733 on the closing basis, then will review. Moving down it may find support at 11684---11661---11618---11553---11447---11407---11341---11270, it may bounce back from any of these points for a pullback move, but please note that sustained break below 11447 on the closing basis will put the long term uptrend in danger, so going down 11447 will be the benchmark point. The up journey for it from here seems to be a difficult task now, however if it manages to move above 11733 and sustain on the closing basis then it can show some sign of improvement for moving up, but as of now it is tremendously weak on the technical footing and further downside looks imminent in coming days if it sustain below 11733 on the closing.

Since it has slipped into correction mode therefore for safe traders it is suggested to avoid long trade till it moves above 11733 and sustain on the closing basis or it can be tried after a reasonable decline at appropriate points but only if it gives visible indication of correction completion else avoid. However aggressive traders can try long trade if it moves and maintain above 11733 for some time intraday 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 11447, buy on decline could be a risky trade for the day, in fact long trade in any way could be a risky affair for the day. In view of the above observation it is strongly suggested to adopt sell on the rise strategy at appropriate range or sell on the price breakdown for taking advantage of short or may be long correction till clarity on correction completion emerges.

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 at appropriate points but not below 11447 with a stop loss of 11390.It is for aggressive traders. It could be a risky trade.

Or

Buy if moves and maintains above 11733 for some time with a stop loss of 11680. It is for aggressive traders. It could be a highly risky trade.

2. Sell on the rise near or within the range of 11830---11860 with a stop loss of 11890 It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it does not move above 11733 in first two hours of trade even   intraday with a stop loss of 11780. It could be risky trade but worth trying.

Or

Sell if it moves and maintains below 11661 for some time with a stop loss of 11735.

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.