A TECHNICAL VIEW ON CNX-NIFTY FOR—14.11.2020

 

CNX-NIFTY

 Open—12659.70--High—12735.95—Low—12607.70---Close-12719.95 on 13.11.2020.

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: 12750/12770/12818/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

After yesterdays correction it closed positive on 13.11.2020 but clarity on correction completion will emerge once it closes above its recent top of 12749.15 on the line chart and then moves above its critical resistance range of 12770---12818. Today is the truncated trading session on the auspicious occasion of Diwali, therefore it seems that there may not be much activity for the day and it may be range bound. But as 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. Therefore the overall bias is on the upside as of now.

  Moving down its critical support points at 12607---12478.45---12430.50---12302---12280---12152---12025---11826---11782---11528.70---11257---11186.

Moving up its critical resistance points at 12750---12770---12818---13419---13611—13640.

In view of the above observation long trade can be tried, if it moves and maintains above 12720 for some time and avoid buy on decline 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 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 maintain above 12720 for some time with a stop loss of 12680.

2. Sell if it moves and maintains below 12680 with a stop loss of 12725. It could be a risky trade.

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.