Open-11513.10--High-11525.90—Low-11423.35---Close-11472.25,
on 25.8.2020.
Support:11447/11378/1341.40/11289.80/11270/11239.80/11171.55/11111.45/11056.55/10894.05/10882.
Resistance: 11495.20/11525.90/11565/11598/11626/11694.85/11736.
Critical Points moving down: 11460.35---11447---11341.40---11289.80---11270---11239.80---11111.45.
Critical Points moving up: -11497.25---11536----11598---11640---11694.85—11706.65.
(Bold and underlined figures are most important)
It is still holding its critical point of 11447 and going down it has another critical point at 11289.80. Please note that break below 11447 will signal alert and sustained break below 11289.80 as of now on the closing basis may put the uptrend in danger. Therefore as
long as it holds 11447 the up move
may continue off course with intermittent correction and with resistance at
various points on the way up at 11536---11565---11598---11626---11640---11714—11736--11798.
The benchmark point for the long trade now is 11447 and eventually
11289.80 as of now. Although
technically it is o.k. now but it seems that it is in a vulnerable zone and if
it does move up and clear the resistance zone of 11536---11626 fast in
the next 3-4 trading session then it could correct sharply. Therefore traders
have to be extremely cautious in the long trade at this point of time.
In view of the above observation long trade can only be tried if
it maintains above 11447. It is
strongly 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 if it maintains above 11447 but not below it with a stop
loss of 11400.
2. Sell on the rise near or within the range of 11565---11626 with a
stop loss of 11660.
Or
Sell if it falls below 11400 and maintain below it for some time
with a stop loss of 11460.
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.