Open-23986.15--High-24051.60--Low-23451.65—Close-23530.85
on 3.9.2020
Support: 23451/23385.25/23211.35/23080.60/22775/22479.85/22439.95/22418.
Resistance: 23875/ 24364.27/
24617/25200/25430/25725/25820/25955/26311.30.
Critical Points moving
up: 23875----24364.27----24612---24880----25120----25432.
Critical Points moving down:-23451---23385.25---23211.35---23080---22479.85.
(Bold and underlined figures are most
important)
It is still holding its recent critical points of 23385.20---23211.35---22693—22367(last two figures
will change every day); but the concerning thing is that it has established
lower top and lower bottom today on the line chat after a long time which
indicates that it could correct from here and sustained break below 23385.20 can push it down further and
sustained break below 22367 can put
the ongoing uptrend in potential danger which may please be noted. 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 23875--- 24364.27---24527----24800---24865---25200.
Looking at today’s price movement going up seems slightly difficult and
correction looks imminent.
In view of the above observation long trade should be avoided
for the day and can only be tried it moves and close above 23875. Since it has made lower top and bottom therefore it seems
apt to try short trade on the reasonable rise near or within the appropriate
range or on the price breakdown for taking advantage of the 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. Sell on the rise near or within the range of 23900---24150
with a stop loss of 24250. It could be a risky trade but worth trying.
Or
Sell if it moves below 23450 and maintain for some time with a stop
loss of 23560. 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.