Open—15874.90--High—15892.90—Low—15834.65---Close-15885.15
on 2.8.2021.
Support:15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75/15336.30/15273.15/15263/15257.10/15176.50/15051.60/14984.15/14888.80/14883.20/14753.55/14653.35/14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance: - 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 bounced back sharply today and closed
with a good gain of 122.10 points. It
is out of very short term correction mode and also moved above its short and
medium term moving averages which is a very positive sign. Please note that if
it holds 15873 on the closing basis then
possibly it could retest its recent all-time high of 15962.25 and to reach here it will face stiff hurdles at 15900---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.
Similarly break below 15841.57
on the closing basis will again push it into very short term corrective mode
and break below 15760 could
accelerate the down move. Going down 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. Please note that it is moving
in a broad range of 15962.25---15431 for quite some time now. Therefore it is
suggested to play the range with the help of above mentioned in between support
and resistance levels till either side breakout happens.
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 seems to have improved with today’s move, 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 particularly in your long trades
at this point of time.
In view of the above observation, long
trade can be tried if it holds 15873
or if it moves above 15900 and
maintain for some time or on decline at appropriate points or near 15800 but not below it. 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 15900 and maintain for some time with a
stop loss of 15860. It is for both the traders.
Or
Buy on decline at appropriate points or near 15800 but not below
it with a stop loss of 15760. It is for both the traders and could be a risky
trade.
Or
Buy if it holds 15873 for some time with a stop loss of 15830. It
is for both the traders.
2. Sell on the rise near or
within the range of 15960---15980 for some time with a stop loss of 16010. It
could be a risky trade but worth trying for intraday gain.
Or
Sell if it moves below 15760
and maintain for some time with a stop loss of 15810. 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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