A TECHNICAL VIEW ON CNX-NIFTY FOR—20.11.2020

 

CNX-NIFTY

 Open—12839.50--High—12963—Low—12745.75---Close-12771.60 on 19.11.2020.

Support:12934.05/28818/12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/ 11665/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447.         

Resistance: 28818/12885/12934.05/13032/13294/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

It has given key reversal today and gone into very short correction and also gone below its most critical point of 12780 for 20.11.2020(this figure will change every day) which is a weak sign and if it remains below 12780 and does not bounce back above 12880 on the closing basis then correction is likely to deepen in coming days. Going down its key points are at 12626---12450.20---12430.50---11676.35, (except for 12430.50 other figures can change), sustained break below 12626 on the closing basis will push it into short term correction mode, sustained break below 12450.20 will push it into medium term correction mode, sustained break below 12430.50 will indicate that it could lose steam for continuation of the up move and most importantly sustained break below 11676.35 on the closing basis can push it into long term correction mode and will potentially threaten the uptrend also, which may please be noted. The overall technical setup is still looking good but certain technical indicators are showing negative divergence and if that comes into play then it could witness sharp fall and correction may last for some time, furthermore in view of key reversal today which indicates that the top may be in place at 12963 for the time being, therefore it is suggested to avoid long trade till clarity on correction completion emerges.  

Moving down its critical support points at 12743---12678------12626---12607---12450.20---12430.50---12417.70---12280---12249---12132---12080---12025---11872---11820---11676.35.

Moving up its critical resistance points at 12780---12827---12880---12963---13032---13294---13419---13611—13640.

In view of the above observation for safe traders long trade should be avoided on the decline for the day and can only be tried if it moves and maintain above 12880 on the closing basis. But aggressive traders can try long trade on decline near 12690 or near 12430 but not below it or if it maintains above 12800 for some time, but in light of key reversal today any type of long trade could be a risky trade for the day which may please be noted. Therefore it is suggested to avoid long trade till correction completion looks visible. Since it slipped into very short correction and some other technical parameters are indicating that correction may deepen, therefore short trade can be attempted after a reasonable rise or on the price breakdown for taking advantage of the corrective move.

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 12800 for some time with a stop loss of 12740.It is for aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 12690 but not below it with a stop loss of 12660. It is for aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 12430 but not below it with a stop loss of 12400. It is for aggressive traders and could be a risky trade.

2. Sell near or within the range of 12880---12940 with a stop loss of 12970. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 12745 for some time with a stop loss of 12800. 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.