Open-22486.70--High-22554.60--Low-22080.40—Close-22267
on 9.9.2020
Support: 21967/21886/21403/21031/20926.
Resistance:22418/22439.95/22479.85/22866/23080.60/23211.35/23385.30/24240/24364.17.
Critical Points moving up: 22636---22866---23080---23318---23770---24364.27----24418.
Critical Points moving down:-22169---22022---21871.68---20369---20010.
(Bold and underlined figures are most
important)
It is showing extreme weakness and as expected broken
all key levels going down but managed to close above one key point of 22169 but as of now the technical setup is very weak
and indicates that it is likely to break this level again and go
down further in coming days. However if it moves above 11287(it will
change every day) and sustain on the closing basis then it could give
short recovery but it will gain some tangible strength for a reasonable up
rally if it moves above 22418 & 22825 and
sustain on the closing basis else it will move sideways with strong downward
bias. Moving down it will find support at 22022---21871---21403---21031---20926. The technical indicators suggest that it is likely to hit 21680 levels
on the downside or below and if it sustains below 21872 on the
closing basis then it is very likely that it could hit the range of 21031---20926 in
coming days. Looking at the
overall technical setup now, it seems that down move may continue for some time
and it may seek lower levels in coming days.
In view of the above observation, since it is in correction mode
now therefore long trade should be avoided till it starts making higher bottom
and top on the line chart or gives a visible indication of bottom formation on
the bar chart. However, long trade can be tried by the aggressive traders as
long as it holds 22169 and not below it, but it could
be a risky trade. Since it is correction mode therefore it is strongly
suggested to adopt sell on the rise strategy in the appropriate price range or
sell on the price breakdown for taking advantage of the corrective move or for
taking advantage of possible rally breakdown till it give visible sign of
lasting bottom formation.
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 22169 but not below it
with a stop loss of 22000. It could be a risky trade.
2. Sell on the rise near or within the range of
22650---22850 with a stop loss of 22940. It could be a risky trade but worth
trying.
Or
Sell near if it maintains below 22876 with a stop loss of 22980. It
could be a risky trade but worth trying.
Or
Sell if it moves below 22169 and maintains with a
stop loss of 22350.
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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