Open—15860.50--High—15881.55—Low—15701---Close-15746.50
on 27.7.2021.
Support: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: - 15780/15835.55/15877/15885.75/15899.80/15915.65/15920/15962.25/
16024/16074/16180/16223/16631/17360/17503/19575/20390.
(Bold and underlined
figures are most important)
It slipped into very short term
correction mode again yesterday and it continued the down move today also and
closed with a loss of 79.80 points.
It is below its major key point of 15780
and also below its short and medium term moving averages which is a very weak
sign. Please note that it has to move above 15780 & 15841.57 on the closing basis to come out of
present corrective mode and to get some strength, but it has to move above 15885.51 and sustain on the closing
basis then possibly it could retest its recent all-time high of 15962.25 and to reach here it will face
hurdles at 15915.65---15920---15952.35
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 or correct at any of these points or
earlier, in fact it is correcting now and if it sustains below 15780 on the closing basis then it could
further drift down and could accelerate the fall. 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 but still not out of woods; furthermore 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 and it has been falling for the last two days. So watch out and be
cautious and careful particularly in your long trades.
In view of the above observation, for
safe traders it is suggested to try long trade if it moves and closes above 15860 avoid buy on decline for now.
However aggressive traders can also try long if it moves above 15830 and maintain for some time or can
try buy on decline at appropriate points or near 15673 but not below it. Please note that long trade on decline 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 one
technical indicator 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 15830 and maintain for some time with a
stop loss of 15760. It is for the aggressive traders and could be a highly
risky trade.
Or
Buy on decline at appropriate points or near 15673 but not below
it with a stop loss of 15600. It for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 15856---15900 for some time with a stop loss of 15930. It
could be a risky trade but worth trying for intraday gain.
Or
Sell if it moves below 15670
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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