Open-30335.05--High-30807.25--Low—30326.70—Close-30709.40
on 9.12.2020
Support:30649/30197.85/29919.75/29784.75/29612.55/29314/29149.90/29030.90/28923.10/28580.90/28525.45/27703.30/27589/27164/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:30801/30807.25/30899/30996/31649.45/31660.75/31783/32157/32613.10.
(Bold and underlined figures are most
important)
It is exhibiting good 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 30416.12—30362.59---30281.83---30074.72---29109.34---28352.30---27340.17(figures
can change). It is well above its benchmark and other key points which a
very positive sign. Please note that sustained break below 30416.12 & 30362.59 can push it into very short correction and
break below 30281.83 & 30074.72
will increase the intensity of it but it may be short lived, sustained break
below 29109.34 on the closing basis
will push it into real short term correction mode which can last for few days,
sustained break below 28352.30 will
push it into medium term correction mode which can last even longer and most
importantly sustained break below 27340.17
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. 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 30649---30545---30416.12---30362.59---30281.83---30197.85—30074.72---29956---29783---29735.92---29613---29436---29314---29109.34..
Moving up its critical resistance points at 30807.25—30986---31180----31660---31783—32157—32361---32613.10.
In view of the above observation, it is suggested to try long trade if
it moves and maintain above 30808 for
some time or can buy on decline at appropriate points but not below 30416. It is in strong up momentum therefore short
trade in general should be avoided, but it can be attempted on the rise at the
appropriate price range or on the price breakdown for taking advantage of the
intraday corrective move. I once again reiterate that one should be extremely
cautious and careful in the long trade at this point of time.
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 30808 for some time with a
stop loss of 30690.
Or
Buy on decline at appropriate points or near 30416 but not below
it with a stop loss of 30310.
2. Sell on the rise near or within the range of 31200---31300
with a stop loss of 31375. 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 30808 even in
intraday trade for first hour of trade with a stop loss of 30870. It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 30310 for
some time with a stop loss of 30425. 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.
