Open-21702.95--High-22227.55--Low-21629.40—Close-22170.60
on 18.8.2020
Support:21967/21807.40/21768/21611.40/21462.40/21459/21370/21122.10/21026/20926.
Resistance:22418/22439.95/22479.85/23080.60/23211.35.
Critical Points moving up: 22232.19---22340---22418---22479.85---22600---22835---23080.
Critical Points moving down:-21900---21679---21536---21459----21359---21026----20926.
(Bold and underlined figures are most
important)
It gave a strong up move today and closed with
a gain of 469.75 points. It is way
above its critical points of 21536 &
21459.10 which exhibits strength, therefore further up move may be ahead in
coming days off course with intermittent correction. But moving up there are
tough resistance points on the way at 22338---22479.85---22600(this
figure will change every day) ---22775.37---22835---23080---23211.35
levels, but if it moves above 22600(it
will change every day) & 22775.37
level and sustain on the closing basis then it will provide good strength and
speed to the ongoing up move and will open the upside up to 24365 levels. The chart setup is
reasonably good but in comparison with Nifty-50 it is showing less strength, but
it still looks good for the up move as of now.
In view of the above observation, long trade can be tried on
decline at appropriate points but not below 21900 or can be tried if it moves and maintains above 22232.19 for some time. Short trade should be avoided in general for
the day but can be attempted after a reasonable rise for taking advantage of
possible 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 21900 if
it holds this level for some time with a stop loss of 21800. It could be a
risky trade.
Or
Buy if it moves and maintain above 22232.19 for some time with a
stop loss of 22100. It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 22650---22775 with a
stop loss of 22875. 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.