Open-30841.85--High-30854.05--Low—30374.50—Close-30714.65
on 18.12.2020
Support:30649/30416/30362/30281/30197.85/29919.75/29784.75/29612.55/29314/29149.90/29030.90/28923.10/28580.90/28525.45/27703.30/27589/27164/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30801/30899/30945.20/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
It is showing strength and steadily moving up in a phased
manner which is a good sign for the up move to carry on. It is well above its
benchmark point of 29314 and also
above its other key points which are placed at 30521.51—30467.98---30387.23---30180.11---29214.73---28457.69---27445.57(figures
can change), which is a positive sign for the up move to continue. Please note that sustained break
below 30521.51 & 30467.98 can
push it into very short correction and break below 30387.23 & 30180.11 will increase the intensity of it but it
may be short lived, sustained break below 29214.73
on the closing basis will push it into real short term correction mode
which can last for few days, sustained break below 28457.69 will push it into medium term correction mode which can
last even longer and most importantly sustained break below 27445.57 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 looking good for the up move to
continue, but the negative divergence is still there which is slightly
concerning therefore it has to be seen whether it fades out or not in coming
days, furthermore it has been breaking couple of key points intraday but at the
end of the day bounces back and closes above it this is concerning because it
shows weakness during the day, therefore be alert in the long trade henceforth because
if it does not bounce back some day then it could correct sharply. Its critical
point as of now is at 30202
sustained close below it can drag it down. The overall bias as of now is on the
upside.
Moving down its critical support points
at 30649---30521.51---30467.98---13399---30387.23---30259---30197.85—30180.11---30042---29934---29835---29784.75---29644---29542---29314---29214.73---28941----28457.69---27455.57.
Moving up its critical resistance points
at 30850---30945.20---30996---31039---31181----31660---31786—32157—32361---32613.10---32763.
In view of the above observation, for safe traders it is suggested to
try long trade if it moves and maintain above 30850 for some time or can buy on decline but not below 30691. However aggressive traders can
buy if it maintain above 30850 for
some time or on decline at appropriate points or near 30521 but not below it. Please note that buying below 30691 could be a risky trade for the
day mind you. It is in up momentum therefore short trade in general should be
avoided, but it can be attempted on the rise at the appropriate price range or
on the price breakdown for taking advantage of the intraday corrective move. I
would suggest that one should be extremely cautious and careful in the long
trade at this point of time.
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 30850 for some time with a
stop loss of 30750.
Or
Buy on decline near 30691 but not below it with a stop loss of 30630.
It is for safe traders but it could be a risky trade.
Or
Buy on decline at appropriate points or near 30521 but not below
it with a stop loss of 30450. It is for aggressive traders, it could be a risky
trade.
2. Sell on the rise near or within the range of 31150---31200
with a stop loss of 31275. It could be a risky trade but worth trying for
intraday gain. Square off the trade in any case before the day ends, but can be
carried forward if the trade is in substantial profit else not.
Or
Sell near if it does not move above 30946 even in
intraday trade for first one and half hour of trade with a stop loss of 31000.
It could be a risky trade but worth trying.
Or
Sell if it moves and maintains below 30450 for
some time with a stop loss of 30530. It could be a highly risky trade but worth
trying for intraday correction.
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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