Open—11852.05--High—11938.60—Low—11805.20---Close-11914.20
on 9.10.2020.
Support:11856.15/11832.30/11802.65/11794.25/11760/11694.85/11549/11490.75/11447.
Resistance: 11929.60/11981.75/12000.35/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.
(Bold and underlined
figures are most important)
Technically it is showing robust strength therefore in all probability
as of now it is expected to retest its all time high of 12430.50 or may go beyond it also and it is likely to happen soon as
of now off course with intermittent correction. The only concerning thing is
that it had a vertical rise and in 10
trading session it has risen by more than 1100
points on the closing basis, so it is highly vulnerable for correction also and
if it correct from here then it could have a vertical fall too, but as long as
it holds 11800 & 11667(this figure
will change if it moves further up from here) on the fall then it could
bounce back again but sustained break below 11667 on the closing basis can push it into short correction mode.
I would therefore suggest avoiding long trade below 11800. In case of correction it will find good support at 11843---11794.25---11760---11667---11593---11447,
sustained break below 11447 on the
closing basis will seriously threaten the uptrend which may please be noted.
Similarly moving up it will face resistance at 11935—12068---12130---12178---12415---12430.50. The bias is hugely
up technically but correction also looks imminent and can happen anytime, so be
alert and cautious in the long trade at this point of time.
In view of the above observation long trade can be tried if
it moves and maintain above 11940 or
buy on decline can also be tried by the aggressive traders with the help of
support points mentioned above but not below 11667 but safe traders should avoid long trade below 11800 on the decline. Since it is in
strong uptrend therefore short trade is a avoid in general but in light of
vertical rise for ten days correction is also possible therefore short trade
can also be tried on the rise in the
appropriate range or on the price breakdown for taking advantage of a possible
corrective move. I once again repeat that the overall bias is highly bullish.
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 maintain above 11940 for some time with a
stop loss of 11900.
Or
Buy on decline near but not below 11800 with a stop loss of 11750.It
is for safe traders. It could be a risky trade.
Or
Buy on decline near but not below 11667 with a stop loss of
11590.It is for aggressive traders. It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 12130---12180 with a
stop loss of 12200. It could be a risky trade but worth trying for intraday
corrective move.
Or
Sell on the rise near or within the range of 12250---12295 with a
stop loss of 12325. It could be a risky trade but worth trying for intraday
corrective move.
Or
Sell if it moves and maintain below 11900 for some time with a stop
loss of 11950. It could be a highly risky trade.
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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