Open—11359.60--High—11381.15—Low—11251.70---Close-11355.05,
on 7.9.2020.
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)
The view and observation expressed in
my post for 7.9.2020 will be valid for 8.9.2020 trading session
also. In addition please note that it has three critical points moving down at 11289.80---11269.52—11248,
it did stage a recovery today from these levels, but how long it will sustain
has to be seen, sustained break below 11248 may accelerate the fall. The
technical indicators as of now suggest that it is very likely that it may break
the level of 11248 in coming days. Last but not the least that it has to
move above 11447 and sustain on the closing basis for the uptrend to
resume. I once again repeat that the overall technical parameter as of now
indicates that it is likely to drift down in coming days with intermittent
short up moves as it staged today.
There has been some change in the
trading strategy for the day.
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 11030--10904 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 11410---11450 with a
stop loss of 11500.
Or
Sell if it falls below 11333 and maintain below it for some time
with a stop loss of 11380.
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.