A TECHNICAL VIEW ON CNX-NIFTY FOR -7.5.2020

CNX-NIFTY

Open-9226.80--High-9346.90—Low-9116.50—Close-9270.90 on 6.5.2020

Support:9262/9241/9227/9205.60/9116.50/9090/9038.90/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.

Resistance:9299/9327.85/9390.31/9468.75/9685.55/9687.55.

 (Bold and underlined figures are most important)                                                                       

It opened flat to positive today at 9226.80 and went down to make a low of 9116.50 then it bounced back and made a high of 9346.90 and closed above the previous day’s close at 9270.90.

It has been closing below its most critical point of 9327.85 & 9390.31 for last three days, which is a weak sign, but since it is still making higher top& bottom on the line chart therefore a close below 9205.60 is required as of now to confirm and trigger the down move convincingly. Please note that sustained close above the critical & important point of 9327.85 & 9390.31 can still take it higher, so be watchful in short trade if it closes above these points and sustain. Since relief rally top seems to be in place therefore long trade should be completely avoided. Short trade would be a better and safe option now.

Moving down it will find good support in the range of 9090---9038 and then 8909—8801---8672, please note that sustained break below 9038 on the closing basis will accelerate the fall.

TRADING STARTAGY      

1. Sell on the rise in the range of 9250---9327.85---9390.31 but not  

    above 9390.31 with a stop loss of above 9475. Kindly note that the   

    self defined stop losses can be applied by the traders but the authentic

    stop loss would  be 9460 only.

Or

    Sell below 9250 with a stop loss of above 9280. This is a short stop

    loss It could be triggered but one has to maintain short position again

    below 9250  for the day.

Remark: - The long term trend is down. It is almost confirmed that the pullback rally has exhausted and down move has begun but a close below 9205.60 is important as of now to accelerate the fall. In view of the above observation long trade is a complete avoid till it closes above 9327.85 & 9390.31. Only short trade should be attempted as suggested above. The long term bias is bearish.    

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 favourable 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.

A TECHNICAL VIEW ON CNX--BANK NIFTY- 6.5.2020

CNX--BANK NIFTY

Open-20147.30--High-20223.15--Low-19212.35—Close-19271.75 on 5.5.2020

Support:19200.08/19051.95/18858/18703.45/18312/18100/17859/17340/17248.42/17143.20/16946/16759/16587/16193/16116.25.

Resistance:19695/19847.65/20010/20191.92/20514.75/20586.22/21122.10/21348.15/21462.40.

 (Bold and underlined figures are most important)                                                                       

After yesterdays huge fall of almost 1800 points it fell today also by 472 points and closed near the low of the day at 19271.75. It is exhibiting tremendous weakness as it has broken its short, medium and long term moving averages decisively on the daily and weekly chart both, furthermore it also broke its recent bottom of 19586.65 & 19409.35 on the line chart. Therefore it seems that the pullback rally top is already in place at 21967 and now the down move should intensify further. Therefore it is suggested to avoid long trade completely till it closes above its critical point of 20010 and sustain on the closing basis for few days. It is strongly suggested to attempt short trade on the rise at appropriate points as of now.

Moving down it will find good support in the range of 18703---18312---18100---17850---17286.40. It is very important to mention here that it has been giving whip saw around its critical level of 20010 but closed below it for last two days and if it sustain below it for another 3-4 days then it could retest or break its recent bottom of 16116.25 made on 24.3.2020 in coming days. It seems very likely to happen at this point of time.

 TRADING STARTAGY      

1. Sell on the rise in the range of 19850---20010---20270 with a stop    loss of above 20590. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 20590 only.

Or

Sell below 19850 with a stop loss of above 20010.

Or

Sell below 19200 with a stop loss of above 19320

Remark: - The long term trend is down. It is almost confirmed that the pullback rally has exhausted and the down move should accelerate now. Therefore long trade is a complete avoid till it closes above 20010 and sustain for few days. Only short trade should be attempted now as suggested above. The long term bias is hugely bearish.    

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 favourable  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.

A TECHNICAL VIEW ON CNX-NIFTY FOR -6.5.2020

CNX-NIFTY

Open-9429.40--High-9450.90—Low-9190.95—Close-9205.60 on 5.5.2020

Support:9141.30/9090/9038.90/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.

Resistance:9239/9257/9264/9327.85/9390.31/9468.75/9685.55/9687.55.

 (Bold and underlined figures are most important) 

                                                                      

It opened at 9429.40 today well above the previous day’s close and made intraday high of 9450.90 but could not sustain at the upper level and made a low of 9190.75 and closed the day near the low at 9205.60. It was a weak closing today.  

It is important to mention here that it did traded above the critical point of 9327.85 & 9390.31 for the reasonable time period today but closed well below it, which indicates gross weakness, therefore it seems that the pullback rally top is already in place at 9889.05 and down move should intensify now, however in between short up rally cannot be ruled out. Therefore it is suggested to avoid long trade completely till it closes above its critical points as mentioned above. It is strongly suggested to attempt short trade on the rise at appropriate points as of now.

Moving down it will find good support in the range of 9090---9038 and then 8909—8801---8672, please note that sustained break below 9038 on the closing basis will accelerate the fall.

TRADING STARTAGY      

1. Sell on the rise  in the range of 9250---9327.85---9390.31 but not  

    above 9390.31 with a stop loss of above 9475. Kindly note that the   

    self defined stop losses can be applied by the traders but the authentic

    stop loss would  be 9475 only.

Or

    Sell below 9190 with a stop loss of above 9270.

Remark: - The long term trend is down. It is almost confirmed that the pullback rally has exhausted and the down move should accelerate now. Therefore long trade is a complete avoid till it closes above 9327.85 & 9390.31. Only short trade should be attempted as suggested above. The long term bias is bearish.    

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 favourable 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.

A TECHNICAL UPDATE ON DOW JONES INDUSTRIAL AVG INDEX- 5.5.2020

DOW JONES INDUSTRIAL AVG INDEX

CLOSED AT 23749.76 ON 4.5.2020.

                                                                           

SUPPORT:23655/23645.30/23627.65/23531.31/23408/23344/23009.06/22941.88/22638.47/22262.24/21712.53/21600/21447.85/20893.41/20735/20553/20379/19845/19677.94.

RESISTANCE:24040.58/24120.78/24264.52/24490.37/24764.77/24965.77/25208/25372.70/25402.83/25507/25743.46.

(Underlined & bold figures are very important)

It topped out at 29568.57 on 12.2.2020 and then corrected sharply and made a bottom at 18213.65 on 23.3.2020 thereafter it rallied up again and made recent top at 24764.77 on 29.4.2020.

It is important to narrate here that from the top of 29568.57 it fell by 11354.92 points or by 38.40% and it took 28 days to make a bottom at 18213.65(both days inclusive) and then it rallied up again and made recent top at 24764.77(both days inclusive) it retraced by 6551.12 points or by 57.69% of the entire fall and took 27 days in this process. Since its fall and rise took almost same time i.e. 28 days & 27 days respectively and the up rally was quite decent and was very near to the Fibonacci retracement point of 61.80% i.e.25230.99, therefore it seems that price wise and time wise the pullback rally has possibly exhausted at 24764.77, if it is so then it has to fulfil certain condition in coming days which are mentioned hereunder:-

1. Sustained close below 23692.41 & 23655 is required; else it may still claw back to 24764.77 or above.

2. Sustained break below 23218.71 on the closing basis required to confirm that the pullback rally has exhausted and down move will begin.

   

Apart from the above conditions it is imperative to note that sustained break below 22638.41 on the closing basis will trigger sharp fall. Furthermore sustained break below 20893.41 on the closing basis will potentially indicate that it could retest or break the recent major bottom of 18213.65, which may please be noted.  

REMARKS: -The long term trend is down. The pullback rally seems to have exhausted so the down move should begin now provided the above mentioned condition are met. Therefore one should be cautious in both side trades as of now. The long term bias is bearish.

Kindly note that make your cost your stop loss in favourable  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.

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.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.

A TECHNICAL VIEW ON CNX-NIFTY FOR -5.5.2020

CNX-NIFTY

Open-9533.50--High-9533.50—Low-9266.95—Close-9293.50 on 4.5.2020

Support:9265/9250/9242/9211/9141.30/9090/9038.90/8981.45/8966/8860/8842.28/8821.90/8801.14/8672.07/8617/8555/.

Resistance:9327.85/9390.31/9468.75/9685.55/9687.55.

 (Bold and underlined figures are most important)                                                                       

It opened with a huge down gap and did not make any effort during the day to fill the gap which is a weak sign, it seem that it was a breakdown gap, however it is technically possible that it can make an effort to fill this gap in next 3-4 trading session and if it does then it can move up to 9731.50, but looking at today’s move it seem less likely.

Its sharp decline today indicates that the pullback rally top is in place at 9889.05 and if it is so then it should not close above 9327.85 & 9390.31 and drift down from here. Please note that moving down it has bed of support in the range of 9265/9250/9242/9211 and then at 9090---9038. So the range for the day would be 9390.31---9327.85----9211----9038. Break below 9200 will trigger fresh fall and sustained break below 9038 will take it down sharply. In view of above observation it is suggested to avoid long trade till it closes above 9390.31 instead short trade would be a better option as of now.   

TRADING STARTAGY      

1. Can try long trade if it moves above 9390.31 and sustain for 15

     minutes with a stop loss of below 9300.It could be a risky trade.       

2. Sell on the rise near or within the range of 9327.85---9390.31 but not  

    above 9390.31 with a stop loss of above 9475.

Or

    Sell below 9211 with a stop loss of above 9330.

Remark: - The long term trend is down. The pullback rally seems to have exhausted and down move has begun provided it should not close above 9327.85 & 9390.31 and move down from here. Avoid long trade till it closes above 9390.31,instead short trade should be attempted as suggested above. The long term bias is bearish.    

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 favourable  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.

A BROAD TECHNICAL VIEW ON CNX-NIFTY FOR THE WEEK STARTING FROM---4.5.2020

CNX-NIFTY

Open-9753.50--High-9889.05—Low-9731.50—Close-9859.90 on 30.4.2020

Support:9687.55/9685.55/9580/9468.75/9390.31/7343/9250/9141.30/9090/9038.90/8981.45/8966/8860/8842.28/8821.90/8801.14/8672.07/8617/8555/.

Resistance:9890/9944.40/9951.90/9958.55/9970.80/10004.55/10033.35/10137.85/10178.45/10276.30/10333.85/10417.30/10490.45/10557.70.

 (Bold and underlined figures are most important)                                                                       

In the preceding week it gave huge upside move which was not expected and it crossed the benchmark point of 9390.31 and thereafter crossed strong resistance points of 9520-580/9685.55/9687.55/decisively and effortlessly and ended the week near the high at 9859.90.Technically it is looking good as it is still making higher bottom and top on the line & bar chart both, furthermore it is well above its short term and above some of its medium term moving averages, which speaks of some strength so this rally may extend. But it is important to mention here that this pullback rally is already 24 days old therefore it seems that it may have entered the vulnerable zone where this rally could possibly exhaust or correct downward any time now before moving up again. Moving up it will face stiff resistance in the range of 9944.40---9970.80---10200 but if it moves above 9970.80 and sustain on the closing basis then it will open the upside up to 10550 else it may possibly exhaust in the range of 9900---9970---10150 provided it keeps closing below 9970.80 on sustained basis. Similarly going down it will find good support at 9687---85/9390.31/9250/9141.30 & 9090. It is important to note here that sustained break below 9390.31 on the closing basis will further weaken this rally and sustained break below 9090 will signal breakdown and can take it down sharply which may be noted.   

The ongoing rally is very strong and indicates strength and favor long trade, but not to forget that this is a relief rally in the bear market and these rallies are very treacherous in nature and furthermore it seems near the completion so it may end anytime soon. Therefore be alert and cautious in long trade at this juncture or better to avoid long trade for the time being. Short trade should be attempted at appropriate points with proper stop losses. 

NOTE: - The upside benchmark point is 9970.80 and downside benchmark point is 9390.31 & 9090 on the closing basis.

TRADING STARTAGY      

1. Buy on decline but not below 9390 with a stop loss of below 9250.    

    It could be a risky trade.

Or

    Buy above 9890 with a stop loss of below 9800. It would be relatively

    Safe trade.

2. Sell on the rise near or within the range of 9970—10200  

    with a stop loss of above 10275.

Or

    Sell below 9850 with a stop loss of above 9910.

Or

    Sell below 9390.31 with a stop loss of above 9465.

Or

    Sell below 9250 with a stop loss of above 9320.

Remark: - The long term trend is still down but the ongoing pullback rally is a robust one, however since this rally has entered into a vulnerable zone therefore it could possibly exhaust or go in for deep downward correction any moment. It is therefore suggested to avoid long trade now or if initiated should be handled with extreme caution and care at this point of time. Short trade can be tried at specific point as suggested above. The long term bias is bearish.    

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 favourable  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.

A BROAD TECHNICAL VIEW ON CNX--BANK NIFTY FOR THE WEEK STARTING FROM- 4.5.2020

CNX--BANK NIFTY

Open-21589.20--High-21967--Low-21353.65—Close-21534.50 on 30-4-2020

Support:21462.40/21122.10/20907.55/20608/20575/20324/20184.10/20010/19988/19887/19586/19466.30/19409.35/19229/19144/19122.10/19051.95/18820/18703.45/18226/18162.53/17719/17606/17502/17350/17248.42/17143.20/16946/16759/16587/16193/16116.25.

Resistance:21967/22418/22469/22996.40/23611.10/23822/24048/24240/24353/24463.

 (Bold and underlined figures are most important)                                                                       

In the preceding week it gave reasonably well up move but it was a weak move in comparison with CNX-Nifty. However it decisively crossed its critical and important point of 20010 and ended the week at 21534.50. Technically it looks okay at this point of time so the ongoing rally may extend. But it is pertinent to mention here that this pullback rally is already 24 days old, furthermore is not that strong in comparison with Nifty, therefore it seems that it may definitely have entered the vulnerable zone where this rally could possibly exhaust or correct downward any time now before moving up again. Moving up it will face stiff resistance in the range of 21970---22418 but if it moves above 22418 and sustain on the closing basis then it will open the upside up to 24365 else it may possibly exhaust in the range of 21970---22418 provided it keeps closing below 22418 on sustained basis. Similarly going down it will find good support at 20608/20324/20010/19630/19430. It is important to mention here that sustained break below 20010 on the closing basis will further weaken this rally and sustained break below 19430 will signal breakdown and can take it down sharply which may be noted.

In view of the above observation it is suggested to avoid long trade for the time being, trying short trade at the appropriate points would be a better option as of now.

NOTE: - The upside benchmark point is 22418 and downside benchmark point is 20010 & 19430 on the closing basis.

TRADING STARTAGY      

1. Buy on decline but not below 20010 with a stop loss of below

    19800.

  Or

    Buy above 21970 with a stop loss of below 21750.

2. Sell on the rise in the range of 21970---22418 but not above 22418

     with a stop loss of above 22550.

Or

    Sell below 21460 with a stop loss of above 21650.

Or

    Sell below 19840 with a stop loss of above 20100.

  

Remark: - The long term trend is still down but the ongoing pullback rally is reasonably good, however since this rally has entered into a vulnerable zone therefore it could possibly exhaust or go in for deep downward correction any moment. It is therefore suggested to avoid long trade now or if initiated should be handled with extreme caution and care at this point of time. Short trade can be tried at specific point as mentioned above. The long term bias is bearish.    

  

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 favourable  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.