Open-29844.80--High-29919.75--Low-29511—Close-29817.85
on 1.12.2020
Support:29784.75/29612.55/29435.05/29314/29156.25/29030.90/28525.45/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24364.
Resistance:30121.75/30197.85/30220/30649/30801/30899/30996/31649.45.
(Bold and underlined figures are most
important)
It opened on a firm note and closed with a gain of 208.79 points, it is showing strength which is good for the
continuation of the uptrend. Its benchmark point is 29314 and other key points are at 29816.25---29609---28643.75---27886.70---26874.60(figures can
change). It is well above its benchmark point of 29314 and shade above its 1st
key points of 29816.25 ,please note
that sustained close above it can help it to regain the up momentum again and
break below it and 29609 again can
push it back into very short correction, 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 extremely
good for the up move to continue but certain technical indicators are
showing distinct negative divergence despite the good rise in it, 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 still
above it all but came closer to few averages, therefore it may take some time
for divergence to happen in reality or it may fade out also with positive
divergence in coming days. The divergence is so strong as of now therefore it
is likely to happen and in that case it can come down to 28278 or below as of now, 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 29816.25---29609---29314---29030.90---28904---28643.75---28292---28202---28119---27703.
Moving up its critical resistance points at 29942---30197.85---30220---30649---30801---30899---30996---31649.
In view of the above observation long trade can be tried on decline at
appropriate points or near 29196 but
not below it or if it maintains above 29816.25
for some time. It would be relatively safe for risk-averse traders not to try
long trade below 29609 for the day;
however aggressive traders can try trade as suggested above. Please note that it
may gain strong up momentum above 29942.
It seems that it may regain the up momentum again provided it sustains above 29816.25 on the closing basis,
therefore short trade in general should be avoided but since some technical
indicators are showing negative divergence which is pointing that it may seek
lower levels in coming days if divergence comes into play, therefore in light
of this 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 maintains above 29816.25 for some time with a stop
loss of 29700. It is for aggressive traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 29609 but not below
it with a stop loss of 29500.It is for risk-averse traders.
2. Sell on the rise near or within the range of 30050—30150
with a stop loss of 30220. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 29500 for
some time with a stop loss of 29610. 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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