Open-23635.30--High-24611.80--Low-23599.20—Close-24523.80
on 28.8.2020
Support:24364.27/24240/23822/23605/23211.35/23080.60/22775/22479.85/22439.95/22418.
Resistance:24617/25200/25430/25725/25820/25955/26311.30.
Critical Points moving
up: 24612---24880----25120----25432----25650---26311.30.
Critical Points moving down:-24364.27---23916---23880----23612---23211.35---23080.
(Bold and underlined figures are most
important)
It is showing tremendous strength and well above its most recent
critical and important point of 24364.27,
so it has opened up the upside up to 26492
provided it holds 24364.27 on the
closing basis. The up journey seems to continue as of now but with intermittent
correction and resistance at various points on the way up. Moving up to the
targeted level of 26492 the possible
resistance points could be at 24880---25200---25432---25650—25725---25955---26311.
Similarly if it gives short correction then the support levels on the downside
could be at 24364.27---23880---23612—23211,
sustained break below 24364.27 can
drag it down.
In view of the above observation long trade can be tried on
decline near 24364.27 if it hold
this level for some time but if it
breaks this level then near 23600
but not below it or if it moves and maintains above 24612. 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 24364.27 with
a stop loss of 24250.
Or
Buy on decline near but not below 23600 with a stop loss of
23500.
Or
Buy if it moves and maintains above 24611 for some time with a
stop loss of 24500. It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 25300---25450 with a
stop loss of 25550. It could be a risky trade but worth trying.
Or
Sell if it moves below 23600 and maintain for some time with a stop
loss of 23700. 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.