Open-24444.20--High-24823.60--Low-24099.85—Close-24635.05
on 21.10.2020
Support:24617.15/24365/24240/24096.75/23912.75/23822/23605.40/23388/23211.35/2308122866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.
Resistance:25105.35/25199/25232.60/25426.75/25723.55/25953.50/26408/26491.85.
(Bold and underlined figures are most
important)
It opened with an up gap at 24444.20
and further moved up and made a high of 24823.60 but in the afternoon it plunged down sharply and hit a low
of 24099.85 but in this fall it
filled the gap also it created today, but today’s fall was unexpected, however
it bounced back sharply in the late afternoon to close with a gain of 323.25 points, which exhibits strength
in it. Therefore in view of today’s move it seems that now it may not attempt
to fill the gap it created on 19.10.2020,
which is a good and positive sign and relief from the fear of going down again.
However in case it goes down then its
key points are at 24386---24365---24267, sustained break below 24386 on the closing basis may push it
into correction mode and sustained break
below 24267 on the closing basis may
accelerate the fall and then going down it will find support at 24115—23897---23678---23408—23341.
The overall chart setup indicate that the further up move is ahead
off course with intermittent correction, moving up from here the possible
upside target or the resistance points could be at 24656---24944---25232.60---25427---25724---25953---26312.
Please note that since it has closed
above 24365 levels and if it sustain
above it on the closing basis then it is heading for the level of 26312—26500 in coming days/weeks.
In view of the above observation long trade can be tried on decline
near 24386 & 24267 but not below
24267 or if it maintains above 24635 for some time. Today’s sharp
recovery is an ample indication that further rise ahead therefore short trade
in general should be avoided. But short trade can also be attempted after a
reasonable rise or on the price breakdown for taking advantage of possible
intraday correction.
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 maintains above 24635
for some time with a stop loss of 24550.It could be risky trade.
Or
Buy on decline near 24386 & 24267 but not below 24267 with a
stop loss of 24150.
2. Sell on the rise near or within the range of 25400---25500
with a stop loss of 25600. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it moves below 24150 and maintain for some
time with a stop loss of 24270.It could be a risky trade but worth trying.
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 favourable 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.
