A TECHNICAL VIEW ON CNX-NIFTY FOR—9.12.2020

 

CNX-NIFTY

 Open—13393.85--High—13435.45—Low—13311.05---Close-13392.95 on 8.12.2020.

Support:13145.85/12963/12790.40/12730.25/12607.70/12430.50/12293.90-12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.           

Resistance:13418/13435.45/13580/13611/13650/13721/13768/.

 (Bold and underlined figures are most important)

It is exhibiting robust strength in the up move and hitting new all time high almost every day, which is a very positive sign for the up move to continue. Furthermore it is well above its most critical and important points which are placed at 13190--12890 & 12790 for 9.12.2020(figures can change every day). Its other key points are at 13283.22---13269---12987.05---12811.17---12430.5---12037.30(except for 12430.50 other figures can change), and it is well above all the key points now which is also a positive sign. Please note that sustained break below 13283.22 & 13269 can push it into very short correction, sustained break below 12987.05 on the closing basis will push it into short term correction mode, sustained break below 12811.17 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 12037.30 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 looking strong for the up move to continue, furthermore the negative divergence has also started to fade out therefore it has to be seen whether it completely fades out or not in coming days. So watch out. But market is displaying extra ordinary exuberance for some time now and it has been rising constantly and sometime vertically too which is making it vulnerable for correction also; furthermore today it has made a pattern which indicate indecisiveness so chances are that it could correct on 9.12.2020 itself. Therefore in light of this it is advised that one should be very alert and cautious in the long trade henceforth. The bias is on the upside as of now.

Moving down its critical support points at 13365---13320---13283.22---13269---13166---13000---12987.05---12871---12811.17---12790---12730---12709.05---12607.70---12430.50.---12037.30.

Moving up its critical resistance points at 13419---13435.45---13611—13650---13721--13768.

In view of the above observation it seems that it may correct for the day therefore for safe traders it is suggested to try long trade only if it moves and maintain above 13436 for some time and avoid buy on decline for the day. But aggressive traders can try long trade if it maintain above 13294 for some time or can buy on decline but not below 13283. Kindly note that buy on decline could be a risky affair for the day. It is in strong up  momentum and negative divergence has also started fading out therefore short trade in general should be avoided, but in light of today’s  pattern short trade can be attempted at the appropriate price range or on the price breakdown for taking advantage of the  intraday 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 13436 for some time with a stop loss of 13380.It is for safe traders.

Or

Buy on decline at appropriate points or near 13283 but not below it with a stop loss of 13250. It is for aggressive traders.

Or

Buy if it moves and maintain above 13394 for some time with a stop loss of 13360. It is for aggressive traders.

2. Sell on the rise near or within the range of 13500---13525 with a stop loss of 13560. It could be a risky trade but worth trying for intraday gain. Square off the trade in any case before the day ends, but can be carried forward if the trade is in substantial profit else not.

Or

Sell near if it does not move above 13435.45 even in intraday trade for first hour of trade with a stop loss of 13460. It could be a risky trade but worth trying.

Or

Sell if it moves and maintains below 13269 for some time with a stop loss of 13300. 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.