Open--11354.40--High--11452.05—Low--11303.65---Close-11333.85,
on 4.9.2020.
Support:11325.85/11303.65/11289.80/11111.45/11056/10882.
Resistance: 11378/11447/11460.35/11584.95/11633/11694.85/11736/11761/11794.25.
Critical Points moving down: 11325---11289.80---11248---11111.45---11056---10882.
Critical Points moving up: -11390--11447---11542---11633---11675—11761---11794.25.
(Bold and underlined figures are most important)
As envisaged it went down today and established lower top and
bottom on the line chart and also broken
the recent bottom of 11325.85 on the
bar chart intraday but managed to close shade above it. It is well below its
major rising trend line and the benchmark point of 11447, so overall it is giving weak signal and indicates further
fall is in the offing and some technical
indicators are also corroborating it as of now. Please note that sustained
close above the benchmark point of 11447
can only give some hope of resuming the uptrend again else the down
correction may continue for some time. Moving down it will find support at 11325.85---11289.80---11111.45---11022---10907,
please note that if it fails to hold the range of 11022—10907 then the fall will accelerate and may hit the range of 10750---10600.
In view of the above observation long trade should be avoided now
and can only be tried if it moves and sustain above 11447 on the closing basis or on the decline near or within the
range of 11022—10907. Since it has
made lower top and bottom therefore as of now it is suggested to adopt sell on
the rise strategy 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. Buy on decline near or within the range of 11022--10907 with
a stop loss of 10850. It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 11450---11535 with a
stop loss of 11585.
Or
Sell if it falls below 11289 and maintain below it for some time
with a stop loss of 11350.
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.
No comments:
Post a Comment
Thank you for sharing your views.