Open-29728.90--High-29813--Low—29379.40—Close-29448.75
on 3.12.2020
Support:29435.05/29314/29156.25/29030.90/28923.10/28580.90/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24364.
Resistance:29612.55/29784.75/30121.75/30197.85/30220/30649/30801/30899/30996/31649.45.
(Bold and underlined figures are most
important)
It opened on a firm note and went further high but finally closed with
a small loss of 14.40 points. Its
benchmark point is 29314 and other
key points are at 29816.25---29609---28643.75---27886.70---26874.60(figures
can change). It is well above its benchmark point of 29314 but it is still below
its 1st
& 2nd key points so
it in into very short correction now and if it does not bounce back above these
points at the earliest the down move may deepen, 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 o.k. but it has made lower top of 29919.75 on the bar chart which is
slightly concerning therefore for the up move to continue it has to hold 29314 mark and eventually move above 29919.75 and sustain on the closing
basis else it may correct. Furthermore certain technical indicators are also showing
distinct negative divergence in it, 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 majority of it but giving
whip saw around few averages and also broken one or two, therefore it may take
some more time to break the complete set of short term averages for divergence
to happen in reality or it may fade out also with positive divergence in coming
days. But the divergence is so strong as of now therefore it is likely to
happen and in that case it can come down to 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 29314---29030.90---28923---28643.75---28292---28202---28119---27703.
Moving up its critical resistance points at 29609---29816.25---29942---30197.85---30220---30649---30801---30899---30996---31649.
In view of the above observation safe traders should avoid long trade
for the day and should try only once it closes above 29919.75, 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 is showing weakness for the last two days therefore long
trade could be a risky affair. Since it has gotten into very short correction
again and some technical indicators are also showing negative divergence which
is pointing that it may seek lower levels in coming days if divergence comes
into play, therefore in light of this 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 29480. It is for aggressive traders and could be a highly risky
trade.
2. Sell on the rise near or within the range of 29890—29950
with a stop loss of 30050. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves and maintains below 29100 for
some time with a stop loss of 29210. 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.
