Open-22315.40--High-22419.35--Low-22234.25—Close-22285.90
on 19.8.2020
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: 22340---22418---22479.85---22600---22835---23080.
Critical Points moving down:-22232.19---21900---21679---21536---21459----21359---21026----20926.
(Bold and underlined figures are most
important)
It moved in a short range today which is an
indicative that a big move may be ahead on the either side in coming days,
therefore if it moves and maintain above 22418---22570(this
figure will change daily) & 22775
on the closing basis then it could move up with strong momentum else it may
head down. Going down sustained break below 21900 will be an indicative that it could correct and sustained
break below 21537 on the closing
basis will confirm that it has slipped into the correction mode.
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 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 or on the price breakdown for taking possible rally exhaustion advantage.
It is imperative to mention here that the ongoing surge in the Indian
as well in the rest of the world stock market for the last few months is not at
all fundamentally backed but purely liquidity driven which is concerning. In
light of this instead of caution it seems that there is an irrational
exuberance in the stock market now which is even more concerning. Please take
my word that at this juncture if investors and traders do not exercise extreme
caution and alertness particularly in the long trade then they are surely going
to be trapped in coming days. One cannot time the correction but it seems that
it is around the corner.
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 today.
Or
Buy if it 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 22850. It could be a risky trade but worth trying.
Or
Sell if it moves below 21900 and maintain for some time with a stop
loss of 22050. 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.