Open-29622--High-29716.85--Low-29368.70—Close-29609.05
on 27.11.2020
Support:29435.05/29314/29156.25/29030.90/28525.45/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24364.
Resistance:29612.55/29784.75/30121.75/30197.85/30220/30649/30801/30899/30996/31649.45.
(Bold and underlined figures are most
important)
After opening firm it moved in a range during the day and finally
closed with a meager gain of 59.30
points. Its benchmark point is 29314
and other key points are at 29816---29609---28643.75---27886.70---26874.60(figures
can change). It is well above its benchmark point of 29314 now but still below its 1st
key points of 29816 and closed just shade
above the 2nd key point
of 29609 therefore it is still in
very short correction mode till it bounces back above it and sustain on the
closing basis. Please note that sustained break below 28643.75 on the closing basis will push it into short term
correction mode, sustained break below 27886.70
will push it into medium term correction mode and most importantly sustained
break below 26874.60 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 for the up move but certain technical indicators are showing
distinct negative divergence which is haunting and if it comes into play then
it could witness sharp fall and then correction may last for some time. Please
note that divergence will come into play only once its short term averages are
broken and at present it is still above it all but came closer to few averages,
therefore it may take some time for divergence to happen in reality or it may
fade out also with positive divergence in coming days. But the divergence is so
strong therefore it is likely to happen and in that case it can come down 28278 or below as of now, so watch out.
Therefore in light of this it is advised that one should be very alert and
cautious in the long trade henceforth.
Moving down its critical support points at 29609---29314---29030.90---28904---28643.75---28292---28202---28119---27703.
Moving up its critical resistance points at 29785---29942---30197.85---30220---30649---30801---30899---30996---31649.
In view of the above observation for safe traders long trade should be
avoided on the decline for the day but can be tried if it moves and maintain
above 29609 for some time. But
aggressive traders can try long trade on decline at appropriate points or near 29196 but not below it or if it
maintains above 29609 for some time.
It may pick up momentum if it moves and sustain above 29942 on the closing basis. Since it is still into very short
correction mode and some other technical indicators are also pointing that it
may seek lower levels in coming days, therefore short trade can also 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 on decline at appropriate points or near
29196 but not below it with a stop loss of 29100.It is for aggressive traders
and could be a highly risky trade.
Or
Buy if it moves and maintains above 29609 for some time with a
stop loss of 29500. It is for aggressive traders and could be a risky
trade.
2. Sell on the rise near or within the range of 29975—30100
with a stop loss of 30210. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 29196 for
some time with a stop loss of 29280. It could be a highly risky trade but worth
trying for corrective move.
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.
