Open-22973.40--High-23180.30--Low-22857.90—Close-23092.15
on 25.8.2020
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)
Please note that the view and observation expressed in my post
for 25.8.2020 is valid for 26.8.2020 trading session also except
for the change in the benchmark point which is now at 22464 (this figure will
change daily) & 22418 and some changes in the trading strategy. It is
important to mention here that break below 22464
will be an alert signal and sustained break below 22418 can push it into correction mode which may please be noted. The
technical setup is improving and looks good for the up move as of now but off course
with intermittent correction and resistance at various points on the way up.
The resistance points are at 23211.35---23430---23611---23883---24365
levels.
In view of the above observation long trade can be tried on
decline near 22775 and if it breaks
this level then can be tried in the range of 22464 & 22418 but
not below 22418. It is suggested to
avoid trying short trade in general but it should be attempted after a
reasonable rise near or 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 22775 if
it holds this level for some time with a stop loss of 22700.
Or
Buy on decline near 22464 & 22418 but not below 22418 with a
stop loss of 22300. 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 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.