Open—17615.55--High—17750.90—Low—17581.85---Close-17691.25
on 4.10.2021.
Support:17630/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -17700/17756/17792.95/17920/17947.75/17971/18027/18081/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
After four days of down move it
staged a reasonable recovery today and closed with a gain of 159.20
points. But it is still into corrective mode, however if it maintains above 17577 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 17801 and sustain and if it moves above
17849 and sustain on the closing
basis then it could retest its all-time high of 17947.65 or may go beyond it also. Moving up to 17849 from here it will face stiff
resistance at 17700---17759---17784---17801---17831---17849
and it could react from any of these points which may please be noted. Similarly
moving down its critical support points could be at 17689---17633---17616---17577---17546---17500---17450---17373---17326(figure
may change), it may bounce back from any of these points but break below 17633 will be an alert point, break
below 17577 will weaken it, break below 17450 will indicate that the on-going uptrend may be in jeopardy and
sustained break below 17326 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. Despite today’s recovery 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
17849(figure may change) and sustain
on the closing basis.
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 17849(this figure can change). However, aggressive
traders can try long trade if it moves above 17700 and maintain for some time or buy on decline near 17577 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 it staged a pullback today 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 on decline near 17577 but not below it with a stop loss
of 17490. It is for the aggressive traders and could be a highly risky trade.
Or
Buy if it moves above 17700 and maintain for some time with a
stop loss of 17625. It is for the aggressive traders and could be a risky
trade.
2. Sell on the rise near or
within the range of 17785---17820 with a stop loss of 17860. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17577
and maintain for some with a stop loss of 17650. 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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