Open-35424.20---High-35427.40--Low—34817.50---Close-35124.40 on 23.8.2021
Support:34976/34930/34859.90/34663/34632.60/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.
Resistance;35380/35428.15/35491.95/35584.30/35648/35811/35985.25/36248/36317/36455.15/36497/36615/37100/37232/37708.75/39010/39695/.
(Bold and underlined
figures are most important)
It is into short term corrective mode
but staged a relief rally today and closed with a gain of 90.55 points. Please note that it can come out of correction mode
it if it moves above 35797 and
sustain on the closing basis or it may complete the correction on the downside
at the following points 34922---34635---34585(last
figure can change). Furthermore if it closes above 35171.40(figure can change) it could stage a relief rally but it
will gain some strength if it closes above 35797
only. Please note that break below 34922
will push it into deep short term correction mode and most importantly
sustained break below 34585(figure will
change every day) may put the uptrend in potential danger which may be kept
in mind. Therefore moving down 34922
& 34585 are the benchmark point
as of now. The other support point would
be at 34859.90---34632.60---35525---34410---34115---33908.
Please note that break below 33908 could
accelerate the fall. It is important to
mention here that for a steady and strong up momentum, it has to move above 36248 and sustain on the closing basis then it could
possibly retest its all time high of 37708.75 or may go beyond also. Going up to the
level of 37708.75
it will face resistance at 35648---35797---35811---36248---36317---36497---36615---37232---37417
points. Looking at last few day price movement it seems less likely to
cross the critical mark of 36248 as
of now. Last but not the least it is relatively very weak on the technical
chart in comparison with Nifty-50. Therefore
be alert and cautious in long trade at this point of time.
It is important to mention here that
its long term technical setup is still good for the
uptrend to continue till it holds 34585(figure
will change every day). The short term technical setup has turned weak, so
watch out for next 1-2 days whether
it improves or not, furthermore certain very important technical indicator are giving
weak indication on the daily and weekly charts which is concerning and it may
drag it down from here. The short term bias is mixed with downward tilt as of
now.
In view of the above observation,
since it has slipped into very short term correction mode therefore for safe
traders long trade should be avoided till it gives visible indication of
correction completion. However
aggressive traders can try long trade if it moves above 35171.40 and maintain for some time or on decline at appropriate
points or near 34922 and then near 34585 but not below it. Please note
that long trade in a weak market could be a risky affair. Since it has not yet
crossed some of its critical long term averages and the overall technical setup
is giving weak indication in short term, 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 35172 and maintain for some time with a
stop loss of 35000.It is for the aggressive traders and could be a highly risky
trade.
Or
Buy on decline at appropriate points or near 34922 and then near
34585 but not below it with a stop loss of 34800 & 34470. It is for the
aggressive traders and could be a highly risky trade but worth trying.
2. Sell if it moves below 34922
and maintain for some time with a stop loss of 35050. It could be a risky trade
but worth trying.
Or
Sell on the rise near or
within the range of 35475---35560 with a stop loss of 35650 It could be a
highly 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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