Open—11218.60--High—11298.15—Low—11185.15---Close-11278,
on 9.9.2020.
Support:11269.52/11248/11111.45/11056/10882.
Resistance: 11289.80/11303.65/11325.85/11378/11447/11460.35/11584.95/11633/11694.85.
Critical Points moving down: 11272---11248---11230---11111.45---11056---10882.
Critical Points moving up: -11338--11373--11447---11542---11633---11675—11761---11794.25.
(Bold and underlined figures are most important)
It did break its important points of 11289.80---11269.52---11248 intraday today but managed to close above last two points, but as of now the technical setup is weak and indicates that it is likely to break this level again and go down further in coming days. However if it moves above 11329 and sustain on the closing basis then it could give short recovery but it will gain some tangible strength for resuming the up move again if it moves above 11447 and sustain on the closing basis else it will move sideways with strong downward bias. Moving down Moving down it will find support at 11171.55---11111.45---11030---10900----10882, please note that if it fails to hold the range of 11030—10882 then the fall will accelerate further and may hit the range of 10750---10600 or below. The bias as on now is on the downside.
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 11030—10882, but aggressive
traders can try long trade if it sustain above 11329, but it could be a risky trade mind you. Since it is in
correction mode 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 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 if it moves and sustain above 11329 for some time with a
stop loss of 11300. It could be a risky trade therefore for aggressive traders
only.
Or
Buy on decline near or within the range of 11030--10882 with a
stop loss of 10840. It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 11360---11410 with a
stop loss of 11460.
Or
Sell if it falls below 11248 and maintain below it for some time
with a stop loss of 11305.
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.