Open-35875.80---High-36080.10--Low—35700.45---Close-35809.25 on 6.8.2021
Support:35648/35584.30/35491.95/35428.15/35380/34976/34930/34859.90/34663/34635.95/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.
Resistance;35811/35985.25/36248/36455.15/36497/36615/37100/37232/37708.75/39010/39695/.
(Bold and underlined
figures are most important)
The correction continued the 2nd day but it closed with a
meager loss of 25.50 points. It was
most normal correction after 3 days
of rise, but please note that break below 35723(it
may change) on the closing basis will push it into very short term
corrective mode and going down it will
find good support at 35648---35576---35186---34859.90---34632.60---34525---34410---34115---33908.
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
36248---36497---36615---37232---37417 points. It is important to note that
it has been trying to cross the critical point of 36248 for the last three days but failed and if it is not able to
cross it in next 2-3 trading session
then it may possibly start drifting down move again which may please be noted.
It is important to mention here that
its long term technical setup is good for the uptrend
to continue. The short term outlook has improved drastically and one very
important technical indicator has also become positive on the daily chart but
on the weekly chart it is still negative this weekend which is concerning but
if it continues it’s up move then it may also come into positive territory next
weekend and if does not then it may start drifting down. So till it comes into
positive mode it is suggested that not to be fearless but be cautious and
careful in your long trades.
In view of the above observation, for
safe traders long trade can be tried if it moves above 36248 and maintain for some time or buy on decline near 35723 but not below it. However aggressive traders can also
try long trade if it moves above 35986
and maintain for some time. Since it has not yet crossed some of its critical
long term averages, 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 36248 and maintain for some time with a
stop loss of 36000.It is for both the traders.
Or
Buy on decline at appropriate points or near 35723 but not below
it with a stop loss 35650. It is for both the traders and could be a risky
trade.
Or
Buy if it moves above 35986 and maintain for some time with a
stop loss of 35800.It is for the aggressive traders and could be highly risky
trade
2. Sell if it moves below 35650
and maintain for some time with a stop loss of 35740. It could be a risky trade
but worth trying.
Or
Sell on the rise near or
within the range of 36180---36248 with a stop loss of 36300 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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Thank you for sharing your views.