Open—11958.55--High—12018.65—Low—11775.75---Close-11937.65
on 21.10.2020.
Support:11929.60/11832.30/11802.65/11794.25/11761/11694.85/11633/11618.10/11584/11549/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.
Resistance:11981.75/12000.35/12034.15/12041.15/12103.05/12158.80/12246.70/12283-12294/12430.50.
(Bold and underlined
figures are most important)
As anticipated and envisaged it
did came very close to the high of 12025.45
of the down bar it made on 15.10.2020 today
but could not cross it, therefore corrected sharply in the afternoon and hit a
low of 11775.75 and in the process
it has filled the gap of 11789 also
it created on 19.10.2020 and bounced
back in a robust manner in the late afternoon to close with a gain of 40.85 points, which is a good sign and
indicate strength. It is still well above its key points of 11803 & 11733(figures can change with
the change in prices) and as long as it hold onto the above points on the
closing basis it is likely to continue the uptrend, but sustained break below 11733 on the closing basis will push it
into correction mode, which may be kept in mind. Moving down it will find
support at 11832---11803---11733---11694.85---11661---11618---11584---11549.The overall chart setup is good as of now and indicates
further rise ahead in coming days/weeks off course with an intermittent
correction. Moving up the upside target or the resistance points could be at12025.45---12041.15---12068---12130---12178---12415---12430.50.
In view of the above observation it is suggested for the safe traders
to avoid long trade on the decline for the day but it can be tried if it
maintains above 11940 for some time.
However aggressive traders can try long trade if it maintain above 11940 or on the decline at the
appropriate points but not below 11803.
Please note that trying long call on decline may be a risky affair for the day
but can be tried because of technical strength in it. Since it exhibited extra
ordinary strength today therefore short trade in general should be avoided but can be
attempted either after a reasonable rise in the appropriate range or on the
price breakdown for taking advantage of possible intraday correction or otherwise.
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 maintain above 11940 with a stop loss of 11890.
It could be a risky trade but worth trying.
Or
Buy on decline but not below 11803 with a stop loss of 11725.It
is for aggressive traders. It could be a highly risky trade but worth trying.
2. Sell on the rise near or within the range of 12070---12130
with a stop loss of 12160 It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintain below 11733 for some time with a stop
loss of 11810. It could be 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.
