A TECHNICAL VIEW ON CNX-NIFTY FOR—18.11.2020

 

CNX-NIFTY

 Open—12932.50--High—12934.05—Low—12797.10---Close-12874.20 on 17.11.2020.

Support:28818/12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance: 12934.05/13032/13294/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

It is perfectly moving up in a rhythm and showing good strength therefore up journey may continue in coming days with in between down correction. Furthermore it is well above its key points of 12603---12430.50---12428.10---11654, (except for 12430.50 other figures can change), which speaks of tremendous strength. Kindly note that sustained break below 12603 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 12428.10 will push it into medium term correction and most importantly sustained break below 11654 can push it into long term correction mode and will potentially threaten the uptrend also, which may please be noted. Apart from the above mentioned key points it has one most critical point at 12759 for 18.11.2020(this figure will change every day), be alert in long trade it closes below this mark. The overall technical setup is strong and indicates further up move may be ahead in coming days but off course with intermittent correction.

Moving down its critical support points at 12769.75---12759---12607.70---12603---12430.50---12428.10---12280---12234---12115---12069---12025---11862---11794---11573.75---11296---11218.

Moving up its critical resistance points at 12934.05---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 12759 but not below it for the day, but aggressive traders can try long trade on decline up to 12690 & then near 12607 but not below it, but this could be a risky trade mind you. Therefore it is suggested to avoid long trade below 12759 for the day. 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 12934 for some time with a stop loss of 12865.

Or

Can, buy at current market price with a stop loss of 12830.

Or

Buy on decline at appropriate points or near 12759 but not below it with a stop loss of 12720. 

                                                                     Or

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

Or

Buy on decline at appropriate points or near 12607 but not below it with a stop loss of 12570. It is for aggressive traders. It could be a risky trade.

2. Sell near or within the range of 13035---13100 with a stop loss of 13150. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 12759 for some time with a stop loss of 12805. It could be a highly risky trade but worth trying for intraday correction.

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.