Open—17661.35--High—17833.45—Low—17640.90---Close-17822.30
on 5.10.2021.
Support:17792.95/17756/17700/17630/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -17855.10/17920/17947.75/17971/18027/18081/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
It continued the up move today and
closed with a gain of 131.05 points. It is out of corrective mode
now but it has to move 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 else
it may slip down again from here . Moving up from here it will face stiff
resistance at 17831---17849---17920---17947.65---17971---18082---18137---18254---18548(figures
may change) and it could react from any of these points which may please be
noted. Similarly moving down its critical support points could be at 17801---17784---17720---17657---17639---17577---17569---17526---17450(figure
may change), it may bounce back from any of these points but break below 17801 & 17784 will push it back
into very short term correction mode again, break below 17639 will be an alert point, break below 17577 will weaken it further and sustained break below 17452 on the closing will indicate that the on-going
uptrend may be in jeopardy and fall may accelerate.
It is important to mention here that its
long term technical setup is still good for the
uptrend to continue. It is out of corrective mode also but certain important
technical indicators are still 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.
In view of the above observation, for
safe traders long trade can be tried if it moves above 17856 and maintain for some time or if it holds 17801 for
some time. However, aggressive traders can also try long trade on decline at
appropriate points or near 17660 but
not below it. It is in the long term
uptrend but correction always happen, 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
note that one has to be extraordinarily alert in short trade because it would be
a contrarian trade.
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 holds 17801 for some time with a stop loss of 17760.
It is for both the traders and could be a risky trade.
Or
Buy if it moves above 17856 and maintain for some time with a
stop loss of 17780. It is for both the traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 17660 but not below
it with a stop loss of 17600. It is for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 17890---17920 with a stop loss of 17960. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17750
and maintain for some with a stop loss of 17830. 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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