Open—11861--High—11949.25—Low—11837.25---Close-11896.80
on 20.10.2020.
Support:11832.30/11802.65/11794.25/11761/11694.85/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.
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)
It had a small up day today but the concerning thing is that as envisaged
(see my post for 16.10.2020) it could not cross the high of 12025.45 of the down bar it made on 15.10.2020 in the expected time of 2-3 days, whereas CNX-Bank Nifty has
already crossed it on the 2nd
day itself i.e. on 19.10.200, so it
is a weak sign for the Nifty. Therefore
now if does not move above the high of 12025.45
in next 1-2 days preferably on 21.10.2020 then it could correct from
here, furthermore the fear of gap filling is also there for the next 2-3 trading session in that case it
could come down to 11789, however if
it does not fill it now then there is no immediate concern for it. So, next 2 days are very crucial
for it and if it does not move up sharply and crosses 12025.45 level then it could correct
from here and moving down it will find
support at 11832---11803---11733---11694.85---11661---11618---11584---11549.
Please note that 11803 & 11733
are the key points and break below 11803
is warning sign and sustained break below 11733
on the closing basis will push it into correction mode. Similarly moving up it
will face resistance at 11929.60---12041.15---12068---12130---12178---12415---12430.50.
The overall chart setup is good as of
now and indicates further rise ahead but a close above 12025.45 is must in next 2
days for the smooth up move.
In view of the above observation for safe traders it is suggested to
avoid long trade on the decline for the day but can be tried if it moves and
maintain above 11900 for some time. However
aggressive traders can try long trade if it maintain above 11900 or on the decline but not below 11733. Please note that trying long call on decline may be a risky
affair for the day but can be tried because of technical strength in it. Since
fear of correction still hang over it, therefore short trade can also be
attempted either after a reasonable rise in the appropriate range or on the
price breakdown for taking advantage of possible intraday correction or otherwise.
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 11900 with a stop loss of 11865.
It could be a risky trade but worth trying.
Or
Buy on decline near but not below 11733 with a stop loss of 11690.It
is for aggressive traders. It could be a highly risky trade but worth trying.
2. Sell on the rise near or within the range of 12025---12080
with a stop loss of 12110 It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintain below 11733 for some time with a stop
loss of 11810. It could be risky trade but worth trying.
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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