Open—12813.40--High—12892.45—Low—12730.25---Close-12859.05
on 20.11.2020.
Support:12769.75/12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/ 11665/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447.
Resistance:12900/12938.25/12963/13032/13294/13419/13611/13640/1377914334/15043.
(Bold and underlined
figures are most important)
After yesterdays key reversal it was supposed to go down but it closed
today with a gain of 87 plus points,
which shows strength, but it is below its first key point of 12880, so it is still in very short
correction mode. Furthermore it has three most critical points on the upside at
12770—12900 for 23.11.2020(figures can
change every day) & 12963(recent high), it is above its first point of 12770
but it has to cross other two points of 12900
& 12963 and sustain on the closing basis to continue the up momentum ,
similarly sustained break below 12770
on the closing basis may accelerate the down move. Please note that going down its
key points are at 12626---12450.20---12430.50---11676.35,
(except for 12430.50 other figures can change), sustained break below 12626 on the closing basis will push it
into short term correction mode, sustained break below 12450.20 will push it into medium term correction mode, sustained break below 12430.50 will indicate that it could
lose steam for continuation of the up move and most importantly sustained break
below 11676.35 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 still looking
good but certain technical indicators are showing negative divergence and if that
comes into play then it could witness sharp fall and then correction may last
for some time. Therefore it is suggested to avoid long trade till it moves
above its recent high of 12963 and
sustain on the closing basis or long trade can be tried after reasonable or
sharp decline at appropriate points but not below 12430.50.
Moving down its critical support points at 12818---12770---12730---12690---12626---12607---12450.20---12430.50---12417.70---12280---12249---12132---12080---12025---11872---11820---11676.35.
Moving up its critical resistance points at 12880---12900---12963---13032---13294---13419---13611—13640.
In view of the above observation for safe traders long trade should be
avoided on the decline for the day and can only be tried if it moves and
maintain above 12940 on the closing
basis or if it crosses its recent high of 12963
and sustain. But aggressive traders can try long trade on decline near 12770 or near 12430 but not below it or if it maintains above 12900 for some time. Since no clarity
emerged on correction completion in today’s trading session therefore it seems that
correction is still on, therefore any type of long trade could be a risky
affair for the day, which may please be noted. So, it is suggested to watch the
market for next two days for clarity on correction completion before long trade
can be attempted. Since it slipped into very short correction mode and some
other technical parameters are indicating that it may seek lower levels in
coming days and correction may last for few days, therefore short trade can be
attempted after a reasonable rise or on the price breakdown for taking
advantage of the corrective move.
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 12900 for some time with a
stop loss of 12850.It is for aggressive traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 12770 but not below
it with a stop loss of 12725. It is for aggressive traders and could be a risky
trade.
Or
Buy on decline at appropriate points or near 12430 but not below
it with a stop loss of 12400. It is for aggressive traders and could be a risky
trade.
2. Sell near or within the range of 12900---12940
with a stop loss of 12970. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 12770 for
some time with a stop loss of 12865. It could be a highly risky trade but worth
trying for intraday correction.
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.
