Open—13672.15--High—13771.25—Low—13626.90---Close-13749.25
on 24.12.2020.
Support:13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.4512963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance:13769/13777.50/13943/14034/14055/14095/14170/14296/14310.
(Bold and underlined
figures are most important)
The rally continued in a robust manner today also and it ended the day
with a gain of 148.15 points. It is well
above its most critical and important points which are placed at 13575---12900 & 12790 for 28.12.2020(figures can change every day). Its
other key points which are at 13620.64---13530.35---13248.38---13072.50---12430.5---12298.63(except
for 12430.50 other figures can change). It is well above the other key
points also therefore it seems that correction is over and it has resumed the
up move again. However break below the key points of 13620.64 & 13530.35 can again push it back in very short term
correction mode which can last 3-4 days, 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 looking robust for the continuation of
the up move because it is well above its critical and key points and also above
its short term moving averages. But there is a concern in the form of negative
divergence and if that comes into play it could come down to the level of 12850 or below and certain other advanced
technical indicators are also corroborating for it as of now and lastly but
most importantly in last 6 trading
session it did cross the targeted top out point of 13769 for 4 days
including today but could not close above this point on any day which is very
concerning. Please note that if it does not close reasonably above 13769 and then above its recent all
time high of 13777.50 in next 1-2 trading session that it could still
correct from here and this time correction could be more severe that what it
witnessed on 21.12.2020. Therefore
strong and sustained up momentum can only be expected once it reasonably closes
above 13777.50 and sustain. In view
of this one should be extra cautious in the long trade at this point of time. The
bias is on the upside.
Moving down its critical support points
at 13721---13648---13620.64---13530.35---13451.16---13376---13282---13259---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 13769-----13777.50---13791---13886---13913---13953---14055---14095---14177---14310.
In view of the above observation for safe traders long trade can be
tried if it moves and sustain above 13780
for some time or buy on decline but not below 13620. However aggressive traders can try long trade on decline but
not below 13530. Please note that
buy on decline below 13620 could be
a risky trade for the day mind you. The correction seems to be over as of now
but I once again reiterate that sustained close reasonably above 13777.50 level only can ensure strong
up momentum as of now else it can slip into correction again. In light of some
uncertainty 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 13780 for some time with
a stop loss of 13740.
Or
Buy on decline near 13620 but not below it with a stop loss of
13570. It is for safe traders.
Or
Buy on decline at appropriate point or near 13530 with a stop
loss of 13500.It is for aggressive traders and could be a highly risky trade.
2. Sell if does not move above 13778 even in intraday
in first one and half hour of trade with a stop loss of 13820.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 13570 for
some time with a stop loss of 13630.It could be a risky trade but worth trying.
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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