Open-30062.60--High-30354.20--Low—29950.60—Close-30211.55
on 7.12.2020
Support:30197.85/29784.75/29612.55/29435.05/29314/29156.25/29030.90/28923.10/28580.90/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75.
Resistance:30220/30355/30545/30649/30801/30899/30996/31649.45.
(Bold and underlined figures are most
important)
It has exhibited strength today which is a positive sign and good for
the up move to continue. Its benchmark point is 29314 and other key points are at 29957.80---28992.41---28235.37---26994.04(figures can change). It
is well above its benchmark and other key points which a very positive sign.
Please note that sustained break below 29957.80
can push it into very short correction, sustained break below 28992.41 on the closing basis will push
it into short term correction mode, sustained break below 28235.37 will push it into medium term correction mode and most
importantly sustained break below 26994.04
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, furthermore the negative divergence has also started to fade out
therefore it has to be seen whether it completely fades out or not in coming
days. So watch out. But market is displaying extra ordinary exuberance for some
time now and it has been rising constantly and sometime vertically too which is
making it vulnerable for correction also. Therefore in light of this it is
advised that one should be very alert and cautious in the long trade henceforth.
No doubt that the bias is on the upside as of now.
Moving down its critical support points at 30197.85—30164.90---29957.80---29892.41---29784.75---29526---29314---29030.90---28923---28643.75---28292---28202---28119---27703.
Moving up its critical resistance points at 30300---30355---30545---30685---30985—31180----31649.
In view of the above observation long trade can be tried on decline at
appropriate points or near 29958 but
not below it or if it maintains above 30300
for some time. However aggressive traders can try long trade even if it
maintains above 30220. It seems that
it has regained up momentum and negative
divergence has also started fading out therefore short trade in general should
be avoided, but it can be tried after a reasonable rise and in the appropriate
range or on the price breakdown for taking advantage of the intraday 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
29958 but not below it with a stop loss of 29880.
Or
Buy if it moves and maintains above 30300 for some time with a
stop loss of 30200. It is for safe traders.
Or
Buy if it maintains above 30212 for some time with a stop loss
of 30150. It is for aggressive traders.
2. Sell on the rise near or within the range of 30575—30675
with a stop loss of 30750. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 29880 for
some time with a stop loss of 29970. 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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