Open-21989.90--High-22079.90--Low-21886.70—Close-21999.45
on 20.8.2020
Support:21967/21807.40/21768/21611.40/21462.40/21459/21370/21122.10/21026/20926.
Resistance:22340/22418/22439.95/22479.85/23080.60/23211.35.
Critical Points moving up: 22232.19---22340---22418---22479.85---22600---22835---23080.
Critical Points moving down:-21900---21791---21606---21536---21359---21026----20926.
(Bold and underlined figures are most
important)
It headed down today but took support at the expected
point of 21900 ,but chances of
holding this point in next 1-2 days
look slightly bleak and break below this level can drag it down to 21537 level and then it may find very
strong support in the range of 21026—20926 only. So sustained break
below 21537 on the closing basis
will confirm that it has slipped into deep correction mode and sustained break
below 20926 will accelerate the fall
further. Similarly going up it will face stiff resistance at 22232.19---22337.14---22418---22479.85--22539(this
figure will change daily) & 22775,
but the major hurdles are 22418---22539(this
figure will change daily) & 22775
and once it crosses these points and sustain on the closing basis then it may
catch up good up momentum, chance of which look slim at this point of time.
In view of the above observation long trade should be completely
avoided for the day and can only be attempted once it closes at least above 22418 and sustain on the closing basis
or on the significant decline near 21537
but not below it or near or within the range of 21026—20926 but not below 20926. It is strongly suggested to try
short trade for the day as it seems that down move may deepen. So traders can
try short trade on the rise at appropriate price or in a price range for taking
advantage of 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 21537 if
it holds this level for some time with a stop loss of 21450. It could be a
risky trade today.
Or
Buy on decline near or within the range of 21026—20926 but not
below 20926 with a stop loss of 20830. It could be a risky trade but worth
trying.
2. Sell on the rise near or within the range of 22450---22550 with a
stop loss of 22650. It could be a risky trade but worth trying.
Or
Sell if it moves below 21880 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.
No comments:
Post a Comment
Thank you for sharing your views.