Open—13910.35
--High—13967.60—Low—13859.90---Close-13932.60 on 29.12.2020.
Support:13943/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.4512963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 14034/14055/14095/14170/14296/14310.
(Bold and underlined
figures are most important)
The rally continued in a robust manner for the fifth straight day and
it ended the day with a gain of 59.39
points. Its key points are at 13770.27---13689.78---13393.61---13217.73---12430.50(except
for 12430.50 other figures can change). It is well above the key points,
which is a positive sign for the continuation of the up move. Please note that
sustained break below the key points of 13770.27
& 13689.78 can again push it into very short term correction mode which
can last 2-3 days, sustained break
below 13393.61 on the closing basis
will push it into deep short term correction mode which can last slightly
longer, sustained break below 13217.73
will push it into medium term correction mode which can last even longer and
most importantly sustained break
below 12430.50 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 strong 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. But the only concern is that today was the 5th straight day
of rise so it could correct for a day or two otherwise it is o.k. In view of
this one should be slightly cautious in the long trade at this point of time. The
bias is on the upside.
Moving down its critical support points
at 13770.27---13769---13689.78---13648.19---13597.50---13517.91---13450.86---13393.61---13328---13298---13217.73---13145.75---13131.45---13068---13025---12963---12790---12751---12730---12709.05---12636.35---12607.70---12430.50.
Moving up its critical resistance points
at 13953---13967.60---14055---14095---14177---14310.
In view of the above observation long trade can tried if it moves and
maintain above 13968 for some time
or on the decline but not below 13769.
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 moves and maintains above 13968 for some time with
a stop loss of 13925.
Or
Buy on decline near 13769 but not below it with a stop loss of
13730.
2. Sell if does not move above 13968 even in intraday
in first one and half hour of trade with a stop loss of 14000.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 13730 for
some time with a stop loss of 13780.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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