Open-30071.65--High-30545.85--Low—30007.80—Close-30402.20
on 24.12.2020
Support:30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30807/30899/30945.20/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
The rally continued in a robust manner today also and
it ended the day with a huge gain of 518.90
points. It is well above its benchmark point of 29314. Its other key points are placed at 30552—30467.98---30387.23---30175.54---29214.73---28457.69---27445.57(figures
can change) but it is still below its
first 2 key points therefore very
short term correction mode is still on and break below 30387.23 & 30175.54 will increase the intensity of the fall,
sustained break below 29214.73 on
the closing basis will push it into real short term correction mode which can
last slightly longer, 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 still o.k. therefore it may resume the
up momentum again after correction is over. It continued the relief rally today
also but since it is still below some of its key points therefore the
correction mode is still on. But is has moved above its short term moving
averages which is a positive sign. But there is a concern in the form of
negative divergence and if that comes into play it could come down to the level
of 28278---26000 and certain other
advanced technical indicators are also corroborating for it as of now. Please
note that if it does not bounce back above its first key point of 30552 in next 1-2 trading session and sustain on the closing basis then it may fall
in corrective mode again and this time it could be with an accelerated pace,
which may please be noted. The short
term bias has turned positive now.
Moving down its critical support points
at 30387.23---30197.85---30175.54---30042---29946---29761.30---29576.15---29314---29214.73---29053---28941---28457.69---28351----28144.19—27278.95---26918---26413.
Moving up its critical resistance points
at 30481---30521.51—30552---30807.25---30945.20---30996---31039---31181----31481---31697---31786—32161—32361---32613.10---32763.
Please note that pullback or relief rally is on and it
is showing strength and if it moves and sustain above 30552 on the closing basis then it may resume the strong up momentum
again and may retest its recent top of 30945.20 or go beyond and also retest it’s
all time high of 32613.10, else it may fall into correction
mode again. In view of this safe traders should avoid long trade till it moves
and sustain above 30552 marks on the
closing basis, avoid buy on decline for the day. However aggressive traders can
try long trade if it maintain above 30481
for some time or on decline near 30175
but not below it, but buy on decline could be a risky trade for the day. Please
note that correction is still on till it closes above 30552 therefore it is suggested to attempt short trade also on the
rise at appropriate price range or on the price breakdown for taking advantage
of the down 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 near 30175 but not below it with a stop loss
of 30000. It is for aggressive traders but it could be a risky trade.
Or
Buy if it maintains above 30481 for some time with a stop loss
of 30370. It is for aggressive traders.
2. Sell on the rise near or within the range of 31000---31150
with a stop loss of 31250. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if does not move above 30552 even in intraday
in first one and half hour of trade with a stop loss of 30625.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 30000 for
some time with a stop loss of 30075. 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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