Open—18439.90--High—18458.30—Low—18209.35---Close-18266.60
on 20.10.2021.
Support: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: -18350.75/18604.50/18778/19549/19575/19639/20390.09/20656.
(Bold and underlined
figures are most important)
It had trend
reversal yesterday and as envisaged it corrected sharply today and closed with a loss
of 152.15
points. Please note that it has slipped into very short term correction mode
today and to come out of it, it has to move above 18332.70 and sustain on the closing basis, here please note that
even if closes above 18302.75 and
sustain on the closing basis then chances are that it may come out of
corrective mode and may resume the up move again else correction may deepen and
may continue for some time. Moving down its critical support points could be at
18209---18164---18116---18078.55---18028---17860---17724---17452(figure
may change), it is into very short term correction mode now, break
below 18078.55---18028
& 17860 will weaken it further and push it into deep short term
correction mode and sustained break below 17452 on the closing basis will indicate that
the on-going uptrend may be in jeopardy. Similarly moving up it will face stiff
resistance at 18285.80---18302.75---18332.70---18360---18407---18478---18512---18525---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.
It is important to mention here that its
long term technical setup is still strong and good
for the uptrend to continue. But after yesterday’s trend reversal it has
slipped into very short term correction mode today, which is concerning therefore
further fall cannot be ruled out if it remains below its critical point of 18332.70. However, except for one important technical indicator others
are still positive as of now which is slightly comforting and may accelerate
the up momentum in coming days.
In view of the above, since it has
slipped into correction mode therefore for safe traders long trade can be tried
only if it closes above 18332.70 and
sustain or when it gives a visible
indication of correction completion at the lower levels. However aggressive traders
can try long trade if it moves above 18333
and maintain for some time or on decline
at appropriate points or near 18078.55 &18028
but not below it. Please note that long trade in a corrective mode
could be a risky affair, therefore one should be extremely cautious in the long
trade at this point of time. It is in
the long term uptrend but now in correction mode, 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 long term uptrend as
of now.
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 18333 and maintain for some time with a
stop loss of 18260. It is for the aggressive traders and could be a risky
trade.
Or
Buy on decline at appropriate point or near or within the range of
18078--18028 but not below it with a stop loss of 17950. It is for the aggressive
traders and could be a highly risky trade.
2. Sell if it moves below
18209 and maintain for some time with a stop loss of 18275. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell on the rise near or
within the range of 18460---18480 with a stop loss of 18510. It could be a
highly risky trade but worth trying for intraday gain.
Or
Sell if it does not move
above 18333 in first one and half hour of trade with a stop loss of 18375. 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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