CNX-NIFTY
Open-9376.95--High-9382.65—Low-9238.20—Close-9251.50 on
8.5.2020
Support:9238/9200/9199.05/9141/9116.50/9090/9038.90/9000/8967.23/8900/8860/8842.28/8801.14/8672.07/8617/8555/.
Resistance:9270.90/9299/9327.85/9390.31/9468.75/9685.55/9687.55.
(Bold and
underlined figures are most important)
It opened with a huge up gap at 9376.95 and made a high of 9382.65
but could not sustain at higher level and in the afternoon plunged down and
made a low of 9238.20 and ended the day near the low at 9251.50 but up by 52.45
points over previous days close . Please note that it filled the gap during the
day.
Technically it shows weakness
as it has started making lower top & bottom after a long time, it
has also broken most of its short and medium term averages on the daily and
weekly chart except for some and most importantly it is well below its long
term moving averages on the daily & weekly chart. Therefore it is expected
to go down for sure in coming days but it will gather momentum if it sustains below 9200.
Kindly note that moving up it will face stiff resistance from its
most important and crucial points at 9270.90---9327.85---9390.31 but sustained
close above 9390.31 could take it higher, which may please be noted. But looking
at the overall technical setup the upside seem to be capped at 9390.31 as of
now, therefore long trade should be completely avoided till it moves above
9390.31 and sustain on the closing basis. So, short trade on the rise or on the
price breakdown should be the best option as of now,but be alert in short trade if it closes above 9390.31.
Moving down it will find good support in the range of 9090---9038
and then 8909—8801---8672 and
sustained break below 9038 on the closing basis will further accelerate the
fall. It is important to mention here that sustained close below 8672 will indicate that it could
retest or break the bottom of 7511.10 it made on 24.3.2020 in coming days/weeks.
TRADING STARTAGY
1. Sell on the rise in the range of 9270---9327.85---9390.31
---9430
with a stop loss of above 9475. Kindly note
that the self defined short
stop losses can be
applied by the traders, but the authentic stop loss
would be 9475 only.
Or
Can sell at C.M.P also but the stop loss would be 9475 only as of now.
Can sell at C.M.P also but the stop loss would be 9475 only as of now.
Or
Sell below 9116 with a stop loss of above 9150.
Remark: - The long term trend
is down. Since it has made lower top & bottom the down move should
accelerate now. In view of the above observation long trade is a complete avoid
till it closes above 9390.31 and sustain. 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.
