Thursday, 5 November 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR—6.11.2020

 

CNX-NIFTY

 Open—12062.40--High—12131.10—Low—12027.60---Close-12120.30 on 5.11.2020.

Support:12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/11733/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                       

Resistance:12158.80/12177/12246.70/12283-12294/12328/12430.50/12818.

 (Bold and underlined figures are most important)

It opened with a huge up gap today and went further high and closed near the high of the day, it is exhibiting good strength, but the only concern is that it has not filled the gap it created today and if it makes an attempt to fill the gap in next 3-4 days time which is technically possible then it could come down to 11929 which may be kept in mind. Furthermore it has had a vertical rise in the last four days from 11557 point so correction is imminent and can happen any time soon. Please note that now its key points are at 11990.60 & 11814.65(figures can change with upward price movement) as long as it holds these key points on the closing basis the ongoing up move will continue, but sustained break below 11990.60 on the closing basis can push it into short term correction mode and sustained break below 11814.65 can push it into slightly deeper correction. Moving down it may find support at-12025.45---11990.60---11929---11903---11856---11838---11814.65---11794.25---11775.75---11761---11733---11661---11618---11535. The technical setup is strong enough as of now, so even if it corrects it is likely to resume the up move again provided it bounce back above its key points after correction is over. Moving up it will face resistance at 12159---12178---12213---12247---12294---12328----12414---12430.50. The bias is up as of now.

In view of the above observation long trade can be tried, if it moves and maintains above 12131 for some time or on the decline at appropriate points or near 11990 with short stop loss and then near 11929 & 11814 but not below it. Please note that long position can be tried above 11990 in any case for the day. Since it is showing good 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 12131 with a stop loss of 12100.

Or

 Buy on decline near but not below 11990 with a stop loss of 11950.

Or

Buy on decline near but not below 11929 with a stop loss of 11900.

Or

 Buy on decline near but not below 11814 with a stop loss of 11760.

2. Sell on the rise near or within the range of 12190---12250 with a stop loss of 12280 It could be a risky trade but worth trying for intraday corrective move.

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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