Monday, 2 November 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR—3.11.2020

 

CNX-NIFTY

 Open—11697.35--High—11725.65—Low—11557.40---Close-11669.15 on 2.11.2020.

Support:11661/11633/11618.10/11614/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance:11684.85/11733/11761/11775.75/11794.25/11803/11832.30/11929.60/11981.75/12025.45/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.

 (Bold and underlined figures are most important)

It showed little strength today but managed to close shade above its first key point of 11661 but it is not enough for the up move to continue and for that it has to close above 11733 and sustain on the closing basis else it may resume the down move again. Moving down it may find support at 11661---11618---11553---11447---11407---11341---11270, it may bounce back from any of these points for a pullback move, but sustained break below 11661 on the closing basis will be an alert sign for the down move to continue and fall may accelerate if it moves below 11535 and sustain on the closing basis. Similarly if it moves and sustain above 11733 on the closing basis then only it can make an effort for the up move to regain the up momentum ,else down move will continue , going up it will face stiff resistance at 11780---11838---11910---11930---11981---12025.45. The long term technical setup looks o.k. but the short term view is mixed with a slight downward bias, but sustain close above 11733 may change the perception.

In view of the above observation for safe traders it is suggested to avoid long trade till it closes above 11733. However aggressive traders can try long trade if it maintains above 11670 and above 11733 for some time intraday or try on decline but not below 11642, but it is suggested to avoid long trade on decline for the day. Since it is in correction mode it is strongly suggested to adopt sell on the rise strategy at appropriate range or sell on the price breakdown for taking advantage of corrective move.

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 11670 with a stop loss of 11620.It is for aggressive traders. It could be a risky trade.

Or

 Buy on decline near but not below 11642 with a stop loss of 11620.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 11690. It is for aggressive traders. It could be a highly risky trade.

2. Sell on the rise near or within the range of 11770---11820 with a stop loss of 11855 It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it does not move above 11733 for some time with a stop loss of 11760 it could be risky trade but worth trying.

Or

Sell if it maintains below 11535 for some time with a stop loss of 11610.

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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