Sunday, 15 November 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR—17.11.2020

 

CNX-NIFTY

 Open—12823.35--High—12828.70—Low—12749.45---Close-12780.25 on 14.11.2020.

Support:12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance: 28818/12828.70/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

It crossed its closing top of 12749.15 today on the line chart and also crossed its resistance range of 12770---12818 intraday and closed within the range, which is a positive sign. It is well above its key points of 12523.50---12430.50---12347.60---11573.75,( 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, break below 12523.50 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 12347.60 will push it into medium term correction and most importantly sustained break below 11573.75 can push it into long term correction mode and will potentially threaten the uptrend, which may please be noted. Today’s move indicates that the correction may be over and now if it moves above 12829 and sustain then it could show strong up momentum. 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 12769.75---12607.70---12523.50---12430.50---12347.60---12280---12182---12050---12025---11840---11794---11573.75---11271---11198.

Moving up its critical resistance points at 12818---12870---13032---13294---13419---13611—13640.

In view of the above observation long trade can be tried now or on the decline at appropriate points or near 12690 but not below it for the day, but aggressive traders can try long trade on decline up to 12523 but not below it, but this could be a risky trade mind you. Please note that it may pick up strong up momentum if it moves and maintain above 12829. 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 12829 for some time with a stop loss of 12770.

Or

Can, buy at current market price with a stop loss of 12730.

Or

Buy on decline at appropriate points or near 12690 but not below it with a stop loss of 12650. It is for safe traders.

Or

Buy on decline at appropriate points or near 12523 but not below it with a stop loss of 12480. It is for aggressive traders. It could be a risky trade.

2. Sell near or within the range of 12900---12950 with a stop loss of 13000. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 12650 with a stop loss of 12700. It could be a 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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.