A TECHNICAL VIEW ON CNX-NIFTY FOR—26.11.2020

 

CNX-NIFTY

 Open—13130--High—13145.85—Low—12833.65---Close-12858.40 on 25.11.2020.

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:12938.25/12963/13032/13145.85/13294/13419/13611/13640/1377914334/15043.

 (Bold and underlined figures are most important)

Further to my last post of 23.11.2020 it moved up and hit a new high of 13145.80 today and then slipped down sharply and closed with a huge loss of 196.75 points, which is weak sign. Furthermore it has also broken its first most critical points of 12870 for 26.11.2020 (figures changes every day), if it sustain below 12870 on the closing basis and then breaks the other critical point of 12760 and sustain then it could witness accelerated down move which may please be noted. Its other key points are at 13047.75---12765.80---12590---12430.5---11816(except for 12430.50 other figures can change), since it has broken its first key point of 13047.75 so it has already gotten into very short term correction and if it does not bounce back above it shortly then correction may deepen, sustained break below 12765.80 on the closing basis will push it into short term correction mode, sustained break below 12590 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 11816 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 o.k. for the up move 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, looking at today’s move it seems that further fall is very likely to happen in coming days. It is therefore advised that one should be very alert and cautious in the long trade. So watch out.

Moving down its critical support points at 12765---12730---12590---12530---12430.50---12340---12245---12150---11968---11915---11857---11816.

Moving up its critical resistance points at 12870---12963---13047.75---13145.85---13294---13419---13611—13640.

In view of the above observation for safe traders long trade should be avoided on the decline for the day but can be tried if it moves and maintain above 12920 for some time. But aggressive traders can try long trade on decline at appropriate points or near 12770 but not below it or if it maintains above 12920 for some time. Kindly note that in light of today down move buy on decline trade for the day could be a risky affair mind you. Since it slipped into very short correction mode today and some other technical indicators are also pointing that it may seek lower levels in coming days, therefore short trade can also 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 12920 for some time with a stop loss of 12840. It 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.

2. Sell near or within the range of 12970--13020 with a stop loss of 13060. 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 12840. 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.