Open—16382.50--High—16509.55—Low—16376.05---Close-16450.50
on 20.8.2021.
Support:16376.05/16359.25/16240/16223/16180/16162.55/16074/16024/15962.25/15920/15915.65/15899.80/15885.75/15877/15835.55/15780/15673.95/15635.95/15632.75/15606.55/15578.55/15566/15471/15450.90/15431.75.
Resistance: -16677/16688/16701.85/17415/17504/19575/20390.
(Bold and underlined
figures are most important)
It slipped into very short correction
on 18.8.2021 and today it opened
with a huge down gap but recovered from the low of the day and finally closed
with a loss of 118.35 points. Please
note that the possible correction completion points were at 16421.40---16368.56---16338---16289—16270---16248---16162
and it did bounce back from near 16368.56, so it may have completed the correction,
but it will confirm that the correction is over once it closes above 16575,
furthermore if it close above 16453 and sustain on the closing basis then also
it may give some pullback or may resume the up move again, but if it moves
below 16421.40
and sustains on the closing basis then it will get into deep short term
correction mode and sustained break below 16338(figure will change every day) may drag
it down fast and may put the on-going up move in potential danger which may
please be noted. Therefore moving down the important benchmark points are 16421.40 &
16338(figure can change) and moving up the critical resistance and
benchmark points are at 16495---16574.60 and
thereafter 16701.85---16795---16881---16950(last
three figures will change every day). The steady and strong up momentum
seems an uphill task from here but it can still make an effort to continue the
up move if it moves above 16574.60 and sustain
on the closing basis, but the fast and strong up momentum will begin once it
moves above 16950(it
will change every day) and sustain on the closing basis, therefore the
journey from here seems tough till it crosses 16950. It is important to mention
here that on the downside as long as it holds 15962.25 levels on the closing
basis there is no major threat to the long term
uptrend as of now.
It is important to mention here that
despite last two days fall its long term technical setup is still good for the uptrend to continue. The down move was a normal correction
as of now and short term outlook is still o.k. as of now, therefore further
rise may be ahead in coming days with intermittent corrections provided it
moves above 16575 and sustain on the
closing basis. It is a buy on dip market now but one should be cautious and
avoid buying if it breaks 16338 and
sustain on the closing basis.
In view of the above observation, since
it is in correction mode long trade in general should be avoided, but it can be
tried if it moves and closes above 16575.However
aggressive traders can try long trade if it moves above 16453 or 16510 and
maintain for some time or can buy on decline at appropriate points or near 16338 but not below it. It is in up
move but still below some of its very 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 16453 or 16510 and maintain for some
time with a stop loss of 16400 & 16470. It is for the aggressive traders.
It could be a risky trade.
Or
Buy on decline at appropriate points or near 16338 but not below
it with a stop loss of 16260. It is for the aggressive traders. It could be a
risky trade.
2. Sell on the rise near or
within the range of 16575---16600 with a stop loss of 16630. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 16421
and maintain for some time with a stop loss of 16460. 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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