Open—37894---High—37923.65--Low—37650.25---Close-37753.20 on 7.10.2021.
Support:37708.75/37315.20/37200/36615/36525.95/36317/36248/36151.95/35531/34817.50.
Resistance:- 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)
After yesterdays down move is staged
a recovery today and closed with a gain of 231.65 points. It is exhibiting volatility for
the last few days which is not good for a steady market movement. It is still
into corrective mode, however if it maintains above 37231 on the closing basis then there is a chance that it may 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 else
it may slip down. Moving up to 38077
from here it will face stiff resistance at 37809---37852---37940.40---38024---38077 and it
could react from any of these points which may please be noted. Its other
critical resistance points would be at 38112.75---38377.25---38545---38743---38888.
Similarly moving down its critical support points could be at 37630---37537---37450---37322.73---37231---37138---36940---36876---36665---36525.95(figure
may change), it may bounce back from any of these points but break below 37231 will be an alert point, break
below 37138 will weaken it, sustained break below 36876 may trigger the further fall, break
below 36665 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 in coming days if it
does not come out of the corrective mode and sustain above its critical points,
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 if it moves above 37812 and
maintain for some time or can 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, it is in pullback mode now but 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 37812 and maintain for some time with a
stop loss of 37650. 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 37075. 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 38080---38120 with a stop loss of 38200. 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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Thank you for sharing your views.