Open-11409.65--High-11418.50—Low-11362.20---Close-11371.60
on 21.8.2020
Support:11341.40/11289.80/11270/11239.80/11171.55/11111.45/11056.55/10894.05/10882.
Resistance: 11378/11447/11474/11495.20/11614.50/11694.85/11706.65..
Critical Points moving down: 11341.40---11289.80---11270---11239.80---11111.45.
Critical Points moving up: -11378---11439---11447---11474----11536.
(Bold
and underlined figures are most important)
It is below the major rising trend line for the 2nd day which is concerning
but despite the trend line break it is not showing the desired weakness,
therefore there is still a ray of hope that it could resume the steady up trend
provided it bounces back above the trend line, which is placed at 11439 (trend line count will move up sharply every day) for the day and
then moves above 11447 and sustain
above it on the closing basis and it should happen in next 1-2 trading session then the relevance of trend line may fade out
somewhat. But it looks difficult for it to keep pace with the said criteria,
therefore it is precariously poised now and correction seems a distinct
possibility. Moving down it may find support at 11341.40---11289.80---11270---11171.55---11111.48---11056 levels
and sustained break below 11270 on
the closing basis may accelerate the fall.
In view of the above observation long trade should be completely
avoided for the day and can only be attempted once it closes above 11447 or on the significant decline and
in the range of 11000—10926 but not
below 10926. It is strongly
suggested to try short trade for the day as it seems that correction may set in.
So traders can try short trade on the rise at appropriate price or in a price
range for taking advantage of corrective move or on the price breakdown 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 near or within the range of 11000—10926 but
not below 10926 with a stop loss of 10870. It could be a risky trade.
2. Sell on the rise near or within the range of 11447---11500 with a
stop loss of 11550.
Or
Sell if it falls below 11270 and maintain below it for some time
with a stop loss of 11330.
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.
