Open—16274.80--High—16359.25—Low—16202.25---Close-16280.10
on 10.8.2021.
Support:16240/16223/16180/16074/16024/15962.25/15920/15915.65/15899.80/15885.75/15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75.
Resistance: -16345/16423/16583/16631/16690/17360/17503/19575/20390.
(Bold and underlined
figures are most important)
It had a volatile day today and it
hit a new all-time high of 16359.25
and then slipped to hit a low of 16202.25
but managed to close with a gain of 21.85
points. Today’s volatility was disturbing but it still looks good to move up
and the upside target or resistance points would be 16354---16431---16584---16631---16690---16750, please
note that moving up the range of 16273—16345---16423
would be a very tough resistance range and it could correct in this range and
it did reacted again today within this range, therefore it seems that it will
be tough to cross this range, so be vigilant and alert in this range. Please
note that break below 16159.64(it may
change) could push it into very short term correction mode, but as long as
it holds 15962.25 level there is no major
threat to the uptrend. Similarly moving down it will find support at 16223---16159---16135---16085---16074---16024---15962.25,
but
sustained break below 15962.25 may accelerate the fall.
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 last weekend which is concerning but
if it continues it’s up move then it may also come into positive territory this
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 trades long trade can be tried if it moves above 16295 and maintain for some time, avoid buy on decline for the day.
However aggressive traders can try buy on decline near 16238 or near 16159 but
not below it. Please note that buying below 16238 could be a risky affair. It is in strong up move but still below
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 gains.
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 16295 and maintain for some time with a
stop loss of 16240. It is for both the traders.
Or
Buy on decline near 16238 and then near 16159 but not below it
with a stop loss of 16200 and 16100 respectively. It is for the aggressive
traders and could be a risky trade.
2. Sell on the rise near or
within the range of 16350---16360 for some time with a stop loss of 16390. It
could be a risky trade but worth trying for intraday gain.
Or
Sell if it moves below 16238
and maintain for some time with a stop loss of 16275. It could be a highly risky
trade but worth trying for intraday gain.
Or
Sell if it moves below
16150 and maintain for some time with a stop loss of 16200. 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.