Open—18602.35--High—18604.45—Low—18377.70---Close-18418.75
on 19.10.2021.
Support:18350.75/18254/18197.80/18081/17971/17947.65/17920/17840/17792.95/7756/17700/17613/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -18604.50/18778/19549/19575/19639/20390.09/20656.
(Bold and underlined
figures are most important)
It finally corrected today and closed
with a loss of 58.30
points. Furthermore it has given a trend reversal today but since it is in
strong uptrend, therefore watch out how this reversal pans out in next 2-3 trading sessions and most
importantly please note that after almost 1000
points of vertical rise it should correct reasonably well to resume the steady
up move again therefore this meager correction does not seem enough and it may
correct further from here. So one should be alert and cautious in the long
trade for the next 2-3 trading
sessions because chances are that the correction could deepen. However as long
as it holds the range of 18332.70---18302.75---18285.80 on the closing
basis then the up move should continue with intermittent correction. It is in strong
uptrend now. Moving up from here its upside target point or stiff resistance points
could be at 18550---18605---18778---19549---19575---19639(figures
may change) and it could react from any of these points and then may resume
the uptrend again or may break down also which may please be noted. But it is
important to note that sustained close above 18778 will open up the upside range
to 20390---20656,
which may please be noted. Similarly moving down its critical support
points could be at 18332.70---18302.75---18285.80---18078.55---18028---17860---17452(figure
may change), it may bounce back from any of these points, break below the
range of 18332.70---18302.75---18285.80,
will push it into very short term correction mode, break below 18078.55---18028 & 17860 will
weaken it further and push it into deep short
term correction mode, sustained break below 17452 on the closing basis will indicate that the on-going
uptrend may be in jeopardy.
It is important to mention here that its
long term technical setup is strong and good for the
uptrend to continue. The short term bias is also positive as of now.
Furthermore except for one other important technical indicator have also turned
positive which may accelerate the up momentum in coming days. I would like to
caution here that although it is on a very sound technical footing as of now
and further rise is indicated, but with every rise in it the risk element is
also increasing, so be alert and careful in your long commitments henceforth.
In view of the above , long trade can
be tried if it moves above 18500 and
maintain for some time or buy on decline at appropriate points or near or
within the range of 18332---18302---18285 but not below it. In light of trend reversal it
could correct further from here, therefore one should be extremely cautious in
the long trade at this point of time. It
is in the long term uptrend but correction always happens as it happened today,
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. Please be extra alert in the short trade because it is
in strong uptrend.
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 18500 and maintain for some time with a
stop loss of 18450. It is for both the traders.
Or
Buy on decline at appropriate point or near or within the range of
18332---18302—18285 but not below it with a stop loss of 18250. It is for both the
traders and could be a risky trade.
2. Sell on the rise near or
within the range of 18600---18640 with a stop loss of 18675. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 18280
and maintain for some with a stop loss of 18340. It could be a highly risky
trade but worth trying for intraday gain.
Or
Sell if it does not move
above 18500 in first one and half hour of trade with a stop loss of 18550. 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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