Open—15855.40--High—15885.75—Low—15682.90---Close-15727.90
on 8.7.2021.
Support:15673.95/15635.95/15606.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: -15780/18835.55/15877/15885.75---15915.65/ 15920/ 16024/16074/16180/16223/16631.
(Bold and underlined
figures are most important)
After staying above the lower band of
its critical range of 15780---15920 for
three days, it has broken it today. It has decisively broken its major rising
trend line also drawn from the bottom of 7511.10
made on 24.3.2021, it is almost
below all its short term moving averages today, therefore all together it is
exhibiting weakness as of now and indicate that downside could open up.
Furthermore and most importantly please note that it has been trying for the
last three days and it tried three times earlier also to cross the critical
point of 15920 but could not, which
clearly indicate the range of 15885.75---15920
is a huge hurdle for it moving up, therefore for the up move to continue it
has to close above 15920 and sustain
on the closing basis then it could possibly hit the upside target points of 16024---16074---16180---16223
else it may drift down. Since,
it is below its key and important point of 15780,
so further downside is expected provided it does not bounce back above it in
next 2-3 days time. Going down its
other critical support points would be at-15673.95---15635.95---15606.50---15566.90---15450.90. It is important to
mention here that its long term technical setup is still good for the uptrend
to continue , therefore as long as it hold 15471 & 15431.75 on the closing basis there is no major threat to the
uptrend. The short term outlook seems dicey and weak as of now.
In view of the above observation, for
safe trader’s long trade can be tried once it closes above 15920 else avoid. However
aggressive trader can try long trade if it moves above 15780 and maintain for some time or can try long on decline near 15635 but not below it. Please note
that in a weak market long trade could be a risky affair mind you. Lastly and
most importantly long trade should be attempted on sharp decline in the range
of 15471---15431 but not below it
with a strict stop loss of 15380.
Since it has not yet crossed some of its critical long term averages and
overall short term technical setup is indicating weakness, therefore short
trade can also be tried after reasonable rise or can be tried on the price breakdown
for taking advantage of the intraday or otherwise 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 (Suggested)
1. Buy if it moves above 15780 and maintain for some time with a
stop loss of 15710. It for the aggressive traders and could be a highly risky
trade.
Or
Buy on decline if it holds 15635 but not below it with a stop
loss of 15590. It for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near or
within the range of 15820---15850 with a stop loss of 15890. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it does not move above
15780 in first one and half hour of trade with a stop loss of 15800. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below
15673.95 and maintain for some time with a stop loss of 15730. It could be a
risky trade but worth trying for intraday gain.
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.
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