Open-21906.95--High-21909.40--Low-21403.15—Close-21700.85
on 17.8.2020
Support:21611.40/21462.40/21459/21370/21122.10/21057-21026/20926/20316/20010.
Resistance:21768/21807.40/21967/22439.95/22479.85/23080.60/23211.35.
Critical Points moving up: 21797---21902---22108---22340---22418---22479.85.
Critical Points moving down:-21536---21459----21359---20926---20501---20380---20245---20010.
(Bold and underlined figures are most
important)
Although it went below its important point of 21536 & 21459.10 intraday but
managed to hold above these points on the closing basis, which is positive
sign, therefore as long as it holds these points on the closing basis it could
resume the up journey again may be after some consolidation in a range. Moving
up it will face stiff resistance at 21925---22108---22338---22418---22479.85---22635(this figure will
change daily) Levels but sustained break above 22635 on the closing
basis will give it some strength for strong up momentum. Similarly if it breaks
and sustain below 21536 & 21459.10 then it could slip into deep correction and
below these marks it will find very strong support in the range of 21026—20926 and sustain break below
this range may accelerate the fall which may be noted.
In view of the above observation, for safe
traders it is suggested to avoid long trade at this juncture but can
be tried on decline near or within the range of 21026---20926.
However aggressive traders can try long trade if it maintains above 21536---21459 for
a reasonable time during the day and off course can try on decline in the above
mentioned range. Although it is above its critical point of 21536
& 21459.10 but it seems that chances of it slipping into
corrective mode for few days still looks likely because of stiff resistance it
will face at short intervals in the up journey, therefore short trade can also
be attempted either on the price breakdown or on the rise also in the
appropriate range for taking advantage of 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 on decline near but not below 21536 if
it holds this level for some time with a stop loss of 21420. It could be a
risky trade.
2. Sell if it moves below 21459 and maintain for some time with a
stop loss of 21560.
Or
Sell on the rise near or within the range of 22250---22400 with a
stop loss of 22500. It could be a risky trade but worth trying.
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.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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Thank you for sharing your views.