Open—13473.50--High—13619.45—Low—13432.20---Close-13601.10
on 23.12.2020.
Support:13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.4512963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance:13611/13658.60/13769/13721/13777.50/13943/14034/14055/14095/14170/14296/14310.
(Bold and underlined
figures are most important)
It continued the pullback rally today also and ended the day with a
gain of 137.90 points. It is well above
its most critical and important points which are placed at 13307---12895 & 12780 for 24.12.2020(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). It has bounced back above all the
key points today on the closing basis and if it sustain above it then
correction seems to be over. However break below 13544.54 & 13530.35 again can push it back in very short term
correction, 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 good and today it has bounced back
above all the key points and also above all the short term moving averages
therefore it seems that the correction may be over and it may resume the up
move again but it will pick up momentum if it moves and sustain above 13648 on the closing basis. The short
term bias has turned positive today and it is needless to mention here that the
long term trend is up.
Moving down its critical support points
at 13588---13544.54---13531---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 13611---13625---13648---13721---13769-----13777.50---13791---13886---13913---13943---14055---14095---14170---14310.
In view of the above observation for safe traders long trade can be
tried if it sustain above 13620 for
some time or buy on decline but not below 13545.
However aggressive traders can try long trade now or on decline but not below 13430. Please note that buy on decline
below 13545 could be a risky trade
mind you. Since correction looks over but the confirmation will come once it
closes above 13648 and sustain on
the closing basis. Please note that short trade can 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 at CMP with stop loss of 13530. It is for aggressive
traders and it could be a risky trade.
Or
Buy if it maintains above 13620 for some time with a stop loss
of 13595. It is for safe traders.
Or
Buy on decline near 13545 but not below it with a stop loss of
13510. It is for safe traders.
Or
Buy on decline at appropriate point or near 13430 with a stop
loss of 13390.It is for aggressive traders and could be a highly risky trade.
2. Sell on the rise near or within the range of 13700---13770
with a stop loss of 13800. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if does not move above 13648 even in intraday
in first one and half hour of trade with a stop loss of 13670.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 13400 for
some time with a stop loss of 13440.
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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