Open—13373.65--High—13492.05—Low—13192.90---Close-13466.30
on 22.12.2020.
Support:13454.48/13399.30/13242/13145.85/13131.4512963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 13530.71/13548.90/ 13597.50/13611/13658.60/13769/13721/13777.50/13943/14034/14055/14095/14170/14296/14310.
(Bold and underlined
figures are most important)
After yesterday’s sharp fall it staged a pullback rally today and
closed with a gain of 137.90 points.
But it is well below its first most critical and important point of 13660 and this point will be at 13680 for 23.12.2020 however it is
still above the other two points which are placed at 12895 & 12780 for 23.12.2020(figures
can change every day). Its other key points which are at 13544.54---13530.35---13248.38---13072.50---12430.5---12298.63(except
for 12430.50 other figures can change) but it is well below its first two
key points of 13544.54 & 13530.35 so
the very short term correction mode is still on and it may last for another 1-2 days but sustained break below 13248.38 on the closing basis will push
it into deep short term correction mode which can last slightly longer,
sustained break below 13072.50 will
push it into medium term correction mode which can last even longer, sustained break below 12430.50 will indicate that it could
lose steam for continuation of the up move and most importantly sustained break
below 12298.63 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. and it may resume the up move
after correction is over. It staged a pullback today but the correction is
still on, furthermore the negative divergence has also
surfaced again which is a bad indication and if it comes into play then it can
come down to 12850—12780 levels as
of now. It has also broken its short term moving averages after a long time, furthermore
it is well below one of the key and critical points which is a weak sign and if
it does not bounce back above its key points and above short term averages in
next 2-3 trading session then the
corrective move could deepen further with an accelerated pace, which may please
be noted. The short term bias is negative now but the long term trend is still
up as of now.
Moving down its critical support points
at 13454.48---13378.24---13284---13248.38---13145.75---13131.45---13072.50---13023.36---12977.40---12921.04---12790---12730---12709.05---12636.35---12607.70---12430.50.
---12391.91---12298.63.
Moving up its critical resistance points
at 13531---13544.54---13588---13625---13648---13769-----13777.50.
Please note that after yesterdays severe fall today’s pullback rally was
most normal one, but if it has the strength then it may last for another 2-3 days or more and it can move up to 13531---13545---13625---13648 level, it
may fizzle out also at any of these points or earlier but if it moves and
sustain above 13545 and then above 13648 on the closing basis then it may
resume the up move again. In view of this safe traders should avoid long trade
till it moves and sustain above at least 13545
marks on the closing basis, avoid buy on decline completely for the day.
However aggressive traders can try long trade if it maintain above 13470 for some time or on decline near 13328 but not below it for taking advantage
of pullback rally, but buy on decline could be a risky affair for the day. In
this context please note that pullback rallies are treacherous in nature and
can end abruptly also trapping traders on the wrong foot, so be careful in the
long trade at this point of time. Since correction is on therefore it is
suggested to attempt short trade on the rise at appropriate range or on the
price breakdown for taking advantage of the down move till clarity on
correction completion emerges. It is important to mention here that break below
13284 on the closing basis will end the
this pullback rally for good.
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 13470 for some time with a stop
loss of 13440. It is for aggressive traders and it could be a risky trade.
Or
Buy on decline near 13328 but not below it with a stop loss of
13270. It is for aggressive traders and it could be a highly risky trade.
2. Sell on the rise near or within the range of 13545---13625
with a stop loss of 13655. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if does not move above 13493 even in intraday
in first one and half hour of trade with a stop loss of 13520.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 13284 for
some time with a stop loss of 13330.
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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