Thursday, 12 November 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR—13.11.2020

 

CNX-NIFTY

 Open—12702.15--High—12741.15—Low—12624.85---Close-12690.80 on 12.11.2020.

Support:12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance: 12770/12818/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

 As anticipated for the last few days it finally corrected on the closing basis today but it is well above its key points of 12478.40---12430.50---12302.60---11528.70,( except for 12430.50 other figures can change), which speaks of  tremendous strength. Kindly note that it’s most important benchmark point is its previous major top of 12430.50 and sustained break below this mark will reduce the chances of resuming the up move again for the time being. But break below 12478.40 on the closing basis will push it into short term correction mode, sustained break below 12430.50 will indicate that it could lose steam for the up move, sustained break below 12302.60 will push it into medium term correction and most importantly sustained break below 11528.70 can push it into long term correction mode and will potentially threaten the uptrend, which may please be noted. Similarly if it moves and maintains above 12749.15 ---12770---12818 on the closing basis then it may resume the up move again. In light of its inherent strength it seems that correction may not last long if it manages to hold 12430.50 on the closing basis. But the only concern is that the gap it created on 9.11.2020 is still there and it can still make an effort to fill the gap tomorrow and in that case it can come down to 12280 levels but if did not fill the gap tomorrow  then concern for filling this gap may be over for the time being. The overall technical setup is strong and indicates further up move ahead in coming days but off course with intermittent correction.

Moving down its critical support points at 12624.85---12478.45---12430.50---12302---12280---12152---12025---11826---11782---11528.70---11257---11186.

Moving up its critical resistance points at 12770---12818---13419---13611—13640.

In view of the above observation long trade can be tried, if it moves and maintains above 12818  for some time or on the decline at appropriate points or near 12478.40 & 12430.50  but not below it for the day. Please note that long trade on decline could be a risky affair for the day so for safe traders it is suggested to avoid it for the day. Aggressive traders can also try long trade if it moves and maintain above 12750. Since it is showing robust 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 or may be for long correction at times.

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 12818 for some time with a stop loss of 12740.

Or

Buy if it moves and maintain above 12750 for some time with a stop loss of 12700. It is for aggressive trades.

Or

Buy on decline at appropriate points or near 12478 & 12430.50 with a stop loss of 12400. It is for aggressive trades.

2. Sell if it does not move above 12818 in first hour of trade with a stop loss of 12840. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 12400 for some time with a stop loss of 12490. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 12624 for some time with a stop loss of 12700. It could be a highly risky trade mind you.

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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