Open-30300.30--High-30363.80--Low—30025.20—Close-30261.90
on 8.12.2020
Support:30197.85/29919.75/29784.75/29612.55/29314/29149.90/29030.90/28923.10/28580.90/28525.45/27703.30/27589/27164/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30363.80/30649/30801/30899/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
It is exhibiting strength which is a positive sign and good for the up
move to continue. Its benchmark point is 29314
and other key points are at 30077.32—30023.74--29943---29735.92---28770.54---28013.50---27001.38(figures
can change). It is well above its benchmark and other key points which a
very positive sign. Please note that sustained break below 30077.32 & 30023.74 can push it into very short correction and
break below 29943 & 29735.92
will increase the intensity of it but it may be short lived, sustained break
below 28770.54 on the closing basis
will push it into real short term correction mode which can last for few days,
sustained break below 28013.50 will
push it into medium term correction mode which can last even longer and most
importantly sustained break below 27001.38
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 looking good for the up move to
continue, furthermore the negative divergence has also started to fade out
therefore it has to be seen whether it completely fades out or not in coming
days. So watch out. But market is displaying extra ordinary exuberance for some
time now and it has been rising constantly and sometime vertically too which is
making it vulnerable for correction also; furthermore today it has made a
pattern which indicate indecisiveness so chances are that it could correct on 9.12.2020 itself. Therefore in light of
this it is advised that one should be very alert and cautious in the long trade
henceforth. It is important to mention here that it is showing less strength in
comparison with CNX-Nifty, but the bias is on the upside as of now.
Moving down its critical support points at 30197.85—30077.30---30023---29943---29813---29735.92---29613---29436---29314---29030.90---28937---28770.50---28235---28013.
Moving up its critical resistance points at 30364---30545---30649---30801—30986---31180----31660---31783—32157—32361---32613.10.
In view of the above observation it seems that it may correct for the
day therefore for safe traders it is suggested to try long trade only if it
moves and maintain above 30364 for
some time and avoid buy on decline for the day. But aggressive traders can try
long trade if it maintain above 30265 for
some time or can buy on decline but not below 30023. Kindly note that buy on decline could be a risky affair for
the day. It is in strong up momentum and
negative divergence has also started fading out therefore short trade in
general should be avoided, but in light of today’s pattern short trade can be attempted at the
appropriate price range or on the price breakdown for taking advantage of the intraday 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 30364 for some time with a
stop loss of 30250.It is for safe traders.
Or
Buy on decline at appropriate points or near 30025 but not below
it with a stop loss of 29950. It is for aggressive traders.
Or
Buy if it moves and maintain above 30265 for some time with a
stop loss of 30180. It is for aggressive traders.
2. Sell on the rise near or within the range of 30575---30650
with a stop loss of 30725. It could be a risky trade but worth trying for
intraday gain. Square off the trade in any case before the day ends, but can be
carried forward if the trade is in substantial profit else not.
Or
Sell near if it does not move above 30364 even in
intraday trade for first hour of trade with a stop loss of 30425. It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 29950 for
some time with a stop loss of 30040. 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.
