Wednesday, 4 November 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR—5.11.2020

 

CNX-NIFTY

 Open—11783.35--High—11929.65—Low—11756.40---Close-11908.50 on 4.11.2020.

Support:11841.30/11832.30/11803/11794.25/11775.75/11761/11733/11661/11633/11618.10/11614/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

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)

It moved up today also and gave positive close and well above its key point of 11733(it can change with price movement), therefore as long as it holds the key point it is expected to continue the up move in coming days. Moving up it will face resistance at 11910---11928---11982---12025.45----12068---12103.05---12159, if it moves and sustain above 11928 on the closing basis then it could retest or go beyond its recent top of 12025.45. Similarly sustained break below 11733 can push it back into correction mode which may please be noted. Going down it may find support at-11856---11838---11794.25---11775.75---11761---11733---11661---11618---11535. The overall technical setup is strong and indicates that it could carry on the up move in coming days off course with intermittent down correction.

In view of the above observation long trade can be tried, if it moves and maintains above 11930 for some time or on the decline but not below 11733. Since it is showing strength for the continuation of the up move, therefore short trade should be avoided in general but can 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 11930 with a stop loss of 11890.

Or

 Buy on decline near but not below 11733 with a stop loss of 11700.

2. Sell on the rise near or within the range of 12070---12125 with a stop loss of 12160 It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves below 11700 and sustain for some time with a stop loss of 11750 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.

 

 

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