Open-23175.55--High-23453.40--Low-23093.15—Close-23414.20
on 26.8.2020
Support:23211.35/23080.60/22775/22479.85/22439.95/22418/22232.19/21967/21886.70.
Resistance:23611.70/23822.20/23912.55/24048.55/24240/24353.10/24617.
Critical Points moving
up: 23471---23611.70---23822---24155---24365--24617.
Critical Points moving down:-23211---23080---22775---22479.85---22439.95---21886.
(Bold and underlined figures are most
important)
Please note that the view and observation expressed in my post
for 25.8.2020 is valid for 27.8.2020 trading session also except
for the change in the benchmark point which is now at 22446 (this figure will
change daily) & 22418 and some changes in the trading strategy.
Therefore as long as it holds these points there may not be a threat to the
ongoing uptrend. Furthermore apart from above points the immediate critical
figure for the day would be 22969 and
close below it could be a warning signal that it could slip into short
correction. The technical setup is good and improving day by day as of now
which indicates further up move is ahead but off course with intermittent correction and resistance at
various points on the way up. The resistance points are at 23460---23611---23883---24365 levels.
In view of the above observation long trade can be tried on
decline at appropriate points but not below 23090 for the day. It is suggested to avoid trying short trade in
general but it should be attempted after a reasonable rise near or within the
appropriate range or on the price breakdown for taking advantage of corrective
move or for taking possible rally exhaustion advantage.
It is imperative to mention
here that the ongoing surge in the Indian as well in the rest of the world
stock market for the last few months is not at all fundamentally backed but
purely liquidity driven which is concerning. In light of this instead of
caution it seems that there is an irrational exuberance in the stock market now
which is even more concerning. Please take my word that at this juncture if
investors and traders do not exercise extreme caution and alertness
particularly in the long trade then they are surely going to be trapped in
coming days. One cannot time the correction but it seems that it is around the
corner.
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 but
not below 23090 with a stop loss of 22950.
Or
Buy if it moves and maintains above 23455 for some time with a
stop loss of 23360. It could be a risky trade but worth trying.
2. Sell on the rise near or within the range of 24150---24365 with a
stop loss of 24465. It could be a risky trade but worth trying.
Or
Sell if it moves below 22969 and maintain for some time with a stop
loss of 23100. 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 favourable 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.
