Open—11447.80--High—11493.50—Low—11419.90---Close-11464.45
on 11.9.2020.
Support:11460.35/11447/11373.60/11325.85/11289.80/11269.52/11248/11111.45/11056.
Resistance: 11584.95/11633/11694.85/11706.06/11761/11794.25.
Critical Points moving down: 11447---11418---11329---11289/11269.52---11248--11056.
Critical Points moving up: -11490--11507.65--11562---11650---11673—11761---11794.25.
(Bold and underlined figures are most important)
Although it is above its benchmark point of 11447 for the last two days but to show strength it has to surge ahead reasonably from here in next 1-2 days to confirm that the up move should continue else it could break the benchmark point and resume the down move again. It is therefore precariously poised now and could move either way, but the overall technical bias is on the upside whereas some technical indicators suggest otherwise. It is therefore suggested to strictly follow the benchmark point of 11447 and avoid long trade below it. Moving up it will face resistance at 11490---11507---11585---11651---11673 levels and if it is weak pullback rally then it can exhaust at any of these points or earlier but if it moves and sustain above 11673 on the closing basis then it could retest its recent high of 11794.25 or go beyond. Similarly moving down it will find support at 11417.84---11328.90 and sustained break below 11328.90 of as now on the closing basis will signal the end of this pullback rally.
In view of the above observation long trade can be tried if
it maintains above 11447 but not
below it, however aggressive
traders can try long trade on decline also but not below 11328.90, but it could be a risky trade mind you. It is suggested
to try short trade also in the appropriate price range or on the price
breakdown for taking advantage of the possible down move or breakdown of the
rally.
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 sustain above 11447 with a stop loss of 11400.
Or
Buy on decline near 11328.90 with a stop loss of 11265. It could
be a risky trade.
2. Sell on the rise near or within the range of 11570---11600 with a
stop loss of 11640. It could be a risky trade.
Or
Sell if it falls below 11447 and maintain below it for some time
with a stop loss of 11490. It could be a risky trade but worth trying.
Or
Sell if it falls below 11265 and maintain for some time with a stop
loss of 11330.
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.