Open-29370.40--High-29623--Low-28923.10—Close-29549.75on
26.11.2020
Support:29435.05/29314/29156.25/29030.90/28525.45/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24364.
Resistance:29612.55/29784.75/30121.75/30197.85/30220/30649/30801/30899/30996/31649.45.
(Bold and underlined figures are most
important)
It gave key reversal on 25.11.2020
and it was supposed to go down today, it did move in the lower trajectory for
some time in the first half but in last hour of trade it moved up sharply to
close with a gain of 353.35 points
which is commendable and indicate strength in it for the up move. Its benchmark
point is 29314 and other key points
are at 29816---29609---28643.75---27886.70---26874.60(figures
can change). It is well above its benchmark point of 29314 now but despite today’s rise it is still below its key points
of 29816 & 29609 therefore it is
still in very short correction mode till it bounces back above it and sustain
on the closing basis. Please note that sustained break below 28643.75 on the closing basis will push
it into short term correction mode, sustained break below 27886.70 will push it into medium term correction mode and most
importantly sustained break below 26874.60
on the closing basis 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 for the up move but certain technical
indicators are showing distinct negative divergence which is haunting and if it
comes into play then it could witness sharp fall and then correction may last
for some time. Please note that divergence will come into play only once its
short term averages are broken and at present it is well above it all,
therefore it may take some time for divergence to happen in reality or it may
fade out with positive divergence in coming days, so watch out. Therefore in
light of this it is advised that one should be very alert and cautious in the
long trade henceforth.
Moving down its critical support points at 29314---29030.90---28904---28643.75---28292---28202---28119---27703.
Moving up its critical resistance points at -29609---29750---29816---30197.85---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 but can be tried if it moves and maintain
above 29550 for some time. But
aggressive traders can try long trade on decline at appropriate points or near 29196 but not below it or if it
maintains above 29550 for some time.
It may pick up momentum above 29785.
Since it is still into very short correction mode and some other technical
indicators are also pointing that it may seek lower levels in coming days,
therefore short trade can also 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
29196 but not below it with a stop loss of 29100.It is for aggressive traders
and could be a highly risky trade.
Or
Buy if it moves and maintains above 29560 for some time with a
stop loss of 29450. It is for aggressive traders and could be a risky trade.
2. Sell on the rise near or within the range of 29785--29885
with a stop loss of 29950. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 29196 for
some time with a stop loss of 29280. 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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