Open-23769--High-23926.15--Low-23482.55—Close-23874.55
on 2.9.2020
Support: 23822/23605/23385.25/23211.35/23080.60/22775/22479.85/22439.95/22418.
Resistance: 24364.27/ 24617/25200/25430/25725/25820/25955/26311.30.
Critical Points moving
up: 24364.27----24612---24880----25120----25432.
Critical Points moving down:-23750----23612---23385.25---23211.35---23080.
(Bold and underlined figures are most
important)
After the significant decline on 31-8-2020, it bounced back marginally in last two days but the good point is that it is still above its
recent critical points of 23385.20---23211.35---22707—22379(last
two figures will change every day), therefore as long as it holds these points
on the closing basis it may resume the up move again else down move may
continue. Moving down it may find good support at 22169----21886---21403---21031---20926 sustained
break below 22169 can drag it down further and sustained break
below 20926 may accelerate the fall. Similarly moving up it
will face stiff resistance at 24364.27---24527----24800---24865---25200.
Please note that sustained close above 24364.27
may accelerate the up momentum.
In view of the above observation long trade on decline should be
avoided for the day but can be tried if it moves and maintains above 23930. Although it is above its critical
point range but not exhibiting required momentum after the severe fall therefore short trade can also 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 advantage of possible rally breakdown.
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 moves and maintains above 23930
for some time with a stop loss of 23830. It could be a risky trade.
2. Sell on the rise near or within the range of 24550---24650 with a
stop loss of 24750. It could be a risky trade but worth trying.
Or
Sell if it moves below 23750 and maintain for some time with a stop
loss of 23890. 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.