Open-22436.85--High-22897.50--Low-22410.05—Close-22833
on 24.8.2020
Support:22775/22479.85/22439.95/22418/22232.19/21967/21886.70.
Resistance:23080.60/23211.35/23234.40/23430/23611.70/23822.20/23912.55/24048.55.
Critical Points moving
up: 23211.35---23471---24155---24365.
Critical Points moving down:-22775---22479.85---22439.95---21886.
(Bold and underlined figures are most
important)
It has decisively crossed its critical and important points of 22418---22479.85--22485(this figure will
change daily) & 22775 (see my post for 24.8.2020), which is an
extremely positive sign for the continuation of the up move. Therefore as long
as it holds 22485(it will change daily)
& 22418 on the closing basis
chances are that it could scale up to 24365
levels in coming days, off course with intermittent correction and resistance
at various points on the way up. Moving up it will face resistance at 23211.35---23430---23611---23883---24365
levels. The benchmark point for the long trade is now 22485(it will change daily) & 22418 avoid long trade if it closes below 22418. Please note that
sustained break below 22485
will indicate some weakness and sustained break 22418 on the closing basis can push it into the correction mode.
Therefore traders have to be extremely cautious in the long trade at this
juncture. The technical setup is improving and looks good as of now.
In view of the above observation long trade can be tried if it
maintains above 22485 & 22418 for some time after open. It is
suggested to avoid trying short trade in general but it should be attempted
after a reasonable rise near within the appropriate range or on the price
breakdown for taking advantage of corrective move or 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 22485 if
it holds this level for some time with a stop loss of 22380.
Or
Buy if it moves and maintains above 22900 for some time with a
stop loss of 22810 It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 23650---23750 with a
stop loss of 22850. It could be a risky trade but worth trying.
Or
Sell if it moves below 22418 and maintain for some time with a stop
loss of 22530. 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 favorable 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.