Open-20740.80--High-21064.30--Low-20430.70—Close-20982.35
on 25.9.2020
Support: 20926/20404.0/20316.20/20122.25/19507.
Resistance:21031.45/21122.10/21403/21462/21807/21967.
Critical Points moving up: 21303---21544---21587---21859---22202.
Critical Points moving down:-20960---20926----20404.90.
(Bold and underlined figures are most
important)
It is extremely weak on the technical footing and after hitting a recent low of 20404.90 on 24.9.2020 it bounced back on 25.9.2020 to closes at 20982.35 with a gain of 525.50 points. It was a pullback move and if it manages to hold 20960 level then this up move may last for another 3-4 days. Moving up it will face resistance at 21303---21544---21587---21859---22250 levels and this rally can end at any of these points or earlier also or sustained break below 20960 on the closing basis will signal the end of the pullback rally, which may please be noted. Today’s pullback move does not indicate that the down correction is over therefore traders should be alert in long trades.
In view of the above observation safe traders should avoid long trade till it gives visible sign of bottom formation, but aggressive traders can try long trade on decline but not below 20960 or if it moves and maintain above 21032 for some time. Please note that the pullback rallies are treacherous in nature and often ends abruptly trapping the traders on the wrong foot, therefore be careful in long trade. It is suggested to adopt sell on the rise strategy or sell on the price breakdown till clarity on bottom formation emerges.
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 20960 with
a stop loss of 20880.
Or
Buy if it moves and sustain above 21032 for some time with a
stop loss of 20940.
2. Sell on the rise near or within the range of 21550---21625
with a stop loss of 21700. It could be a risky trade but worth trying.
Or
Sell if it moves below 20926 and maintain for some
time with a stop loss of 21032.
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.