Open—13547.20--High—13589.65—Low—13447.05---Close-13567.85
on 15.12.2020.
Support:13549/13435.45/13418/13399.30/13242/13145.85/12963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 13597.50/13611/13650/13721/13768/14034/14170/14296/14310.
(Bold and underlined
figures are most important)
After a lot of movement on the both
side during the day, it finally closed with a meager gain of 9.70 points. But it is well above its
most critical and important points which are placed at 13370--12905 & 12790 for 16.12.2020(figures
can change every day) and also above other key points which are at 13407.02---13392.83---13110.86---12934.98---12430.5---12161.11(except
for 12430.50 other figures can change) which is a positive sign for the up
move to continue. Please note that
sustained break below 13407.02 & 13392.83
can push it into very short correction, sustained break below 13110.86 on the closing basis will push
it into short term correction mode, sustained break below 12934.98 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 12161.11 on the closing basis
can push it into long term correction mode and will potentially threaten the
uptrend also, which may please be noted. It is important to mention here that
sustained break below its most critical and important points of 13370--12905 & 12790 on the closing
basis could be an indication of a big fall ahead.
The overall technical setup is looking strong for the up move to continue,
but negative divergence has surfaced again on the daily chart therefore it has
to be seen whether it will fade out or not in coming days, so it is slightly
concerning. Furthermore certain other technical indicators are also pointing
that it may reasonably correct in coming days, so be watchful. But the overall bias as of now is on the
upside.
It is important to mention here that
there is possibility that it could top out for now anywhere in the range of 13611---13768
and then correct but if it moves above 13768 and sustain on the closing basis
then the next possible strong top out range could be 14034---14170---14310
which may please be noted. It is therefore suggested to be extra careful in the
long trade for the time being.
Moving down its critical support points
at 13548.90---13478.30---13407.02---13399.30---13392.83---13289---13193---13163---13098.71---13061.54---12980---12935---12809---12790---12730---12709.05---12607.70---12566---12430.50.---12323.15---12161.11.
Moving up its critical resistance points
at 13598---13611—13650---13721—13768---13791---14034---14170---14310.
In view of the above observation, for safe traders it is suggested to
try long trade if it moves and maintains above 13598 for some time or can buy on decline but not below 13478. However aggressive traders can
buy now or on decline up to 13407
but not below it. Please note that buying below 13478 could be a risky trade for the day mind you. It is in strong up
momentum therefore short trade in general should be avoided, but keeping the
possible top out range in mind short trade 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 would 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 13598 for some time with a
stop loss of 13550.
Or
Buy on decline near 13478 but not below it with a stop loss of
13440. It could be a risky trade
Or
Buy on decline at appropriate points or near 13407 but not below
it with a stop loss of 13380.It is for aggressive traders. It could be a risky
trade.
2. Sell on the rise near or within the range of 13650---13680
with a stop loss of 13710. 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 13598 even in
intraday trade for first hour of trade with a stop loss of 13620. It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 13380 for
some time with a stop loss of 13415. 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.
