Open—15856.80--High—15899.80—Low—15768.40---Close-15856.05
on 23.7.2021.
Support:15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: - 15877/15885.75/15915.65/15920/15962.25/
16024/16074/16180/16223/16631/17360/17503/19575/20390.
(Bold and underlined
figures are most important)
As envisaged (see my post for 22.7.2021) it seems that it did complete the
correction when it hit a low of 15578.55
on 20.7.2021 and bounced back sharply in next 2 trading sessions to move above some of the important points. But
please note that it has to move above 15885.51
and sustain on the closing basis then it could retest its recent all-time high
of 15962.25 and to reach here it will
face hurdles at 15885.51---15920 and
if it could cross 15962.25 and
sustain then the upside target could be at 16024---16074---16109---16180---16200---16223---16583---16630.
Please note that it may take a breather at any of these points or earlier and
correct to resume the rally again, but if it moves below 15841.57 and sustain on the closing basis then it could slip into
very short term correction again and break below 15760 (this figure may change) could accelerate the fall. Therefore
the important point moving down is 15841.57
15760 and moving up is 15885.51 as of now. It is needless to
mention here that it has bed of supports in the range of 15673---15632---15606—15566---15471--15431,
therefore till it holds this range there is no fear of sharp and consistent
decline.
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 improved in the last two days, but one very important technical
indicator on the daily and weekly chart is still showing weakness and indicates
that it could drag it down again if it does not improve in coming days. So
watch out and be cautious and careful in your trades.
In view of the above observation, for
safe traders it is suggested to try long trade if it moves above 15900 and maintain for some time avoid
buy on decline for the day. However aggressive traders can also try long trade
if it holds 15842 for some time or
can try buy on decline at appropriate points or near 15780 but not below it. Please note that long trade below 15780 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 one
technical is still showing extreme 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 15900 and maintain for some time with a
stop loss of 15845. It is for both the traders.
Or
Buy if it holds 15842 for some time with a stop loss of 15760. It
is for both the traders.
Or
Buy on decline at appropriate points or near 15780 but not below
it with a stop loss of 15740. It for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near 15960
with a stop loss of 15980. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it moves below 15760
for some time with a stop loss of 15810. It could be a risky trade but worth
trying for intraday gain.
Or
Sell if it does not move above
15920 in first one and half hour of trade with a stop loss of 15935. 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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Thank you for sharing your views.