Open-31006.90--High-31359.35--Low—31002.60—Close-31322.50
on 29.12.2020
Support:30996/30945.20/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
The rally continued in a robust manner for the fifth
straight day and it ended the day with a gain of 441.55 points. It is well
above its benchmark point of 29314. Its
other key points are placed at 30797—30496.52---29531---28774---27761.98(figures
can change) it is well above its key points also which is a positive sign
for the up move to continue. Please note that sustained break below 30797 & 30496.52 can push it into
very short correction mode which can last for 2-3 days, sustained break below 29531 on the closing basis will push it
into real short term correction mode which can last slightly longer, sustained
break below 28774 will push it into
medium term correction mode which can last even longer and most importantly
sustained break below 27761.98 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 strong for the continuation of
the up move because it is well above its key points and also well above its
short, medium and long term moving averages.
But the only concern is that today was the 5th straight day of rise so it could correct
for a day or two otherwise it is o.k. In view of this one should be slightly
cautious in the long trade at this point of time. The bias is on the upside.
Moving down
its critical support points at 30945.20---30797---30496.52----30449---30197.85---30175.54---30042---29946---29761.30---29531---29314---29214.73---29053---28941---28457.69---28351----28144.19—27278.95---26918---26413.
Moving up its critical resistance points
at 31481---31697---31786—32161—32361---32613.10---32763.
In view of the above observation long trade can tried if it moves and
maintain above 31360 for some time
or on the decline but not below 30797.
Since it is in the strong up move therefore short trade in general should be
avoided but short trade can also be attempted on the rise at appropriate price
range or on the price breakdown for taking advantage of the intraday corrective
move irrespective of the trend.
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 maintains above 31360 for some time with
a stop loss of 31250.
Or
Buy on decline at appropriate points or near 30797 but not below
it with a stop loss of 30700.
2. Sell if does not move above 31360 even in intraday
in first one and half hour of trade with a stop loss of 31425.It could be a
risky trade but worth trying.
Or
Sell if it moves and
maintains below 30700 for some time with a stop loss of 30810.It could be a
risky trade but worth trying
Or
Sell on the rise near or within the range of 31750---31850
with a stop loss of 31950. It could be a risky trade but worth trying for
intraday gain.
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.
No comments:
Post a Comment
Thank you for sharing your views.