Open-28935.75--High-29406.70--Low-28580.90—Close-29236on
20.11.2020
Support:29156.25/29030.90/28525.45/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24364.
Resistance:29314/29435.05/29612.55/29784.75/30121.75/30220/30649/30801/30899/30996/31649.45.
(Bold and underlined figures are most
important)
After yesterday’s sharp fall it bounced back today and closed with a
gain of 332.95 points, but it is
still below its benchmark point of 29314
and first key point of 29293.50;
therefore it is still into very short correction mode, however it is well above
its other key points of 28328---27571---26559,
(the figures can change), but if it does not bounce back above 29314 and sustain on the closing basis at
the earliest and then does not crosses it recent high of 29784.75 or if it fall below from here and break its recent bottom
of 28903 on the line chart then correction
may deepen in coming days. In this context please note that sustained break below 28328 on the closing basis will push it
into short term correction mode, sustained break below 27571 will push it into medium term correction and most importantly
sustained break below 26559 can push
it into long term correction mode and will potentially threaten the uptrend
also, which may please be noted. The overall technical setup is still looking
good but certain technical indicators are showing negative divergence and if
that comes into play then it could witness sharp fall and correction may last
for some time, therefore it is suggested to avoid long trade till it moves and
sustain above 29314 on the closing
basis or try it after reasonable decline where correction completion looks
visible.
Moving down its critical support points at 29030.90---28989---28744---28498---28328---28119---27703.
Moving up its critical resistance points at 29314---29785---29851---30220---30649---30801---30899---30996---31649.
In view of the above observation for safe traders long trade should be
avoided on the decline for the day and can only be tried if it moves and
maintain above 29314 on the closing
basis. But aggressive traders can try long trade on decline near 28903 and then near 28580 but not below it or if it maintains above 29314 for some time. But it seems that
correction is still on therefore any type of long trade could be a risky affair
for the day which may please be noted. Since it slipped into very short
correction and some other technical parameters are indicating that correction
may deepen, therefore short trade can be attempted after a reasonable rise or
on the price breakdown for taking advantage of the corrective move.
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 at appropriate points or near
28903 but not below it with a stop loss of 28830.It is for aggressive traders
and could be highly risky trade.
Or
Buy on decline at appropriate points or near
28580 but not below it with a stop loss of 28500.It is for aggressive traders
and could be highly risky trade.
Or
Buy if it moves and maintains above 29314 for some time with a
stop loss of 29190. It is for aggressive traders and could be highly risky
trade.
2. Sell on the rise near or within the range of 29675--29785
with a stop loss of 29850. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 28903 for
some time with a stop loss of 29050. It could be a highly risky trade but worth
trying for corrective move.
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 favorable 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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