Open—15703.95--High—15728.45—Low—15578.55---Close-15632.10
on 20.7.2021.
Support:15606.55/15578.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: - 15632.75/15635.95/15673.95/15780/15835.55/15877/15885.75/15915.65/15920/15962.25/ 16024/16074/16180/16223/16631/17360/17503/19575/20390.
(Bold and underlined
figures are most important)
It continued the down move today and closed with a loss of 120.30 points. It is well below its
critical point of 15920 & 15780,
it is decisively below its short term moving averages, it has broken multiple
bottoms on the line chart and recent double bottom on the bar chart, therefore
all together it is exhibiting weakness in the short term. Please note that if
it does not bounce back above at least above 15780---15800 in next 1-2 trading
sessions then it could further drift down. But going down it has good support
in the range of 15606—15566---15471--15431,
therefore till it holds this range there is no fear of sharp and consistent
decline. However it has slipped into very short correction mode yesterday and
to get out of it has to move above 15842 else it will move down further and may
complete correction at 15646---15571---15566—15553 , today it did hit
a level of 15578.55 so it may have
completed the correction. But please note that break below 15632 could weaken it further and break below 15553 could accelerate the fall and can drag it down towards lower
end of the support points range. It is important to mention here that its long
term technical setup is still good for the uptrend to continue as of now , 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 has turned weak, furthermore one very important technical indicator on
the daily and weekly chart is showing weakness and indicates that it could fall
and it has been falling for the last two days and if it does not improve fear
of further fall will always be there with intermittent relief rallies. So be extremely
cautious in the long trade at this point of time.
In view of the above observation, since
it is into very short correction mode, for safe traders it is suggested to
avoid long trade till it gives visible indication of correction completion or
closes above 15842. However
aggressive traders can try long trade if it moves above 15645 and maintain for some time or can try buy on decline at
appropriate points or near 15553 but
not below it. Please note that long trade in a weak market could be a risky
affair. 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 the
overall short term technical setup is weak, 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 15645 and maintain for some time with a
stop loss of 15600. It for the aggressive traders and could be a highly risky
trade.
Or
Buy on decline at appropriate points or near 15553 but not below
it with a stop loss of 15530. It for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 15760---15790 with a stop loss of 15820. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it remains below
15645 for some time with a stop loss of 15680. It could be a risky trade but
worth trying for intraday gain.
Or
Sell if it moves below 15553
and maintain for some time with a stop loss of 15600. 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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