Open—37768.80---High—38106.85--Low—37452---Close-37521.55 on 6.10.2021.
Support:37315.20/37200/36876.37/36615/36525.95/36317/36248/36151.95/35531/34817.50.
Resistance:- 37708.75/37811.95/38112.75/ 38377.25/38545/38719-743/38888/38914/39093/39695/40234/40337/40498/40680/40746/40855/41169.
(Bold and underlined
figures are most important)
It opened on a positive note went up
further high and thereafter moved in a range for quite some time but in the
afternoon plunged down sharply and closed with a loss of 219.44 points. It is still into
corrective mode and the way it behaved today further fall from here cannot be
ruled out. However as long as it maintains above 37231 on the closing basis then there is a chance that it can still
make an effort to come out of the corrective mode. Please note that it will be
out of corrective mode if it closes above 37940.40
and sustain and if it moves above 38077
and sustain on the closing basis then it could retest its all-time high of 38377.25 or may go beyond it also.
Moving up to 38077 from here it will
face stiff resistance at 37537---37627---37809---37852---37940.40---38024---38077
and it could react from any of these points which may please be noted.
Similarly moving down its critical support points could be at 37450---37322.73---37231---37090---36876---36630---36525.95(figure
may change), it may bounce back from any of these points but break below 37231 will weaken it, break below 37090 will be an alert point , break below 36630 will indicate that the on-going uptrend may be in jeopardy
and sustained break below 36525.95
on the closing basis may accelerate the fall.
It is important to mention here that its
long term technical setup is still good for the
uptrend to continue. It is still into corrective mode, furthermore certain
important technical indicators are giving weak signal on the daily chart which
may drag it down, so one has to be cautious and alert in the long trade at
least till the indicators turn positive or if it closes above 38077(figure may change) and sustain on
the closing basis. The short term bias is weak.
In view of the above observation, it
is into corrective mode therefore safe traders should avoid long trade till the
fall is arrested or it gives visible indication of correction completion. It would be safe to try long trade only
once it closes above 38077(this figure can change). However, aggressive
traders can try long trade for pullback rally if it moves above 37750 and maintain for some time or buy
on decline at appropriate points or near 37231
but not below it. Please note that long
trade in a corrective market could be a risky affair. It is in the long
term uptrend but in corrective mode now and one never know how this on-going
correction will culminate, therefore short trade can also be attempted
on the rise and at appropriate point 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 37750 and maintain for some time with a
stop loss of 37600. It is for the aggressive traders and could be a highly
risky trade.
Or
Buy on decline at appropriate points or near 37231 but not below
it with a stop loss of 37050. It is for the aggressive traders and could be a
highly risky trade.
2. Sell if it moves below 37230
and maintain for some time with a stop loss of 37470. It could be a risky trade
but worth trying for intraday gains.
Or
Sell on the rise near or
within the range of 37850---37950 with a stop loss of 38050. It could be a
risky trade but worth trying for intraday gains.
Or
Sell if it does not move
above 37750 in first one and half hour of trade even intraday with a stop loss
of 37850. It could be a risky trade but worth trying for intraday gains.
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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