Open-31295.90--High-31409.50--Low—31088.10—Close-31264.05
on 31.12.2020
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)
It had a down day today also and ended the day with a meager
loss of 39 points. It is well above its
benchmark point of 29314. Its other key
points are placed at 30912.34—30611.81---29646.43---28889.39---27877.27(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 30912.34 & 30611.81 can push it
into very short correction mode which can last for 1-3 days, sustained break below 29646.43 on the closing basis will push it into real short term
correction mode which can last slightly longer, sustained break below 28889.39 will push it into medium term
correction mode which can last even longer and most importantly sustained break
below 27877.27 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 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. Furthermore
it has corrected for the 2nd
day today but it is likely to resume the up move again in a day or two. The
bias is on the upside.
It has ended the year 2020
on a reasonably good note and if this uptrend has to continue in the year 2021 then it has to sustain above its
critical points of 32613.10---32465.45---31264.05
on the closing basis. Please note that since it is far away from its first two
critical points so even if it maintains above 31264.05 on the closing basis then chances are that it could cross
the other two critical in coming days. But sustained close below 31264.05 can take it down sharply,
which may be kept in mind. Therefore it is suggested to avoid long trade for
sure below the said mark.
Moving down
its critical support points at 31178---30985---30945.20---30912.34---30611.81----30542---30243---30197.85---30056---29944.55---29646.43---29483---29314---29157.55---28889.39---28601---28464.69---28351----28144.19—27877.27.
Moving up its critical resistance points
at 31481---31510---31697---31733—32161—32260---32613.10---33043---33327---33681---34130---34323---35440---37700.
In view of the above observation for safe traders long trade can tried
if it moves and maintain above 31325 for
some time, avoid buy on decline for the day. However, aggressive traders can
try long trade above 31265 also or
can buy on decline too but not below 30912.
Please note that buy on decline could be a risky trade, therefore it is
suggested to avoid buying below 31265
as of now. 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 maintains above 31265 for some time with a stop
loss of 31070.It is for aggressive traders. It could be a risky trade.
Or
Buy if it moves and maintain above 31325 for some time with a
stop loss of 31200. It is for the safe and aggressive traders both.
Or
Buy on decline at appropriate points or near 30912 but not below
it with a stop loss of 30840. It is for aggressive traders and could be a risky
trade.
2. Sell if it moves and maintains below 31260 for some
time with a stop loss of 31325.It could be a risky trade but worth trying
Or
Sell if it moves and maintain below 31070 for some
time with a stop loss of 31130. It could be a risky trade.
Or
Sell on the rise near or within the range of 31481---31510
with a stop loss of 31550. 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.
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