A TECHNICAL VIEW ON CNX-NIFTY FOR—23.11.2020

 

CNX-NIFTY

 Open—12813.40--High—12892.45—Low—12730.25---Close-12859.05 on 20.11.2020.

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/ 11665/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447.         

Resistance:12900/12938.25/12963/13032/13294/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

After yesterdays key reversal it was supposed to go down but it closed today with a gain of 87 plus points, which shows strength, but it is below its first key point of 12880, so it is still in very short correction mode. Furthermore it has three most critical points on the upside at 12770—12900 for 23.11.2020(figures can change every day) & 12963(recent high), it is above its first point of 12770 but it has to cross other two points of 12900 & 12963 and sustain on the closing basis to continue the up momentum , similarly sustained break below 12770 on the closing basis may accelerate the down move. Please note that 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 then correction may last for some time. Therefore it is suggested to avoid long trade till it moves above its recent high of 12963 and sustain on the closing basis or long trade can be tried after reasonable or sharp decline at appropriate points but not below 12430.50.  

Moving down its critical support points at 12818---12770---12730---12690---12626---12607---12450.20---12430.50---12417.70---12280---12249---12132---12080---12025---11872---11820---11676.35.

Moving up its critical resistance points at 12880---12900---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 12940 on the closing basis or if it crosses its recent high of 12963 and sustain. But aggressive traders can try long trade on decline near 12770 or near 12430 but not below it or if it maintains above 12900 for some time. Since no clarity emerged on correction completion in today’s trading session therefore it seems that correction is still on, therefore any type of long trade could be a risky affair for the day, which may please be noted. So, it is suggested to watch the market for next two days for clarity on correction completion before long trade can be attempted. Since it slipped into very short correction mode and some other technical parameters are indicating that it may seek lower levels in coming days and correction may last for few days, 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 12900 for some time with a stop loss of 12850.It is for aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 12770 but not below it with a stop loss of 12725. 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 12900---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 12770 for some time with a stop loss of 12865. 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.