Open—17886.85--High—17941.85—Low—17840.35---Close-17895.20
on 8.10.2021.
Support:17885/17855.10/17792.95/7756/17700/17630/17576.10/17452.90/17436.50/17326.10/17254.20/17055/16701.85/16656.60/16376.05/16349.45/16162.55/15962.25.
Resistance: -17920/17947.75/17971/18027/18081/18137/18254/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
It continued the up move today and
closed with a gain of 104.85 points. It is out of corrective mode
and also closed above its important point of 17849 which is positive sign, but it is important to mention here
that it went near its all-time high of 17947.75
for the 3rd time in last
few days but could not cross it so it has made triple top near the all-time
high, therefore now it will be a very tough resistance point for it for moving
up further, but it is in good uptrend. However if it does not move above 17947.75 levels and sustain on the
closing basis then chances of slipping down is also there, so be cautious at
this point of time. Moving up from here its upside target point or stiff
resistance points could be at 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 17849---17801---17792.95---17784---17725---17650---17558---17526---17450---17326(figure
may change), it may bounce back from any of these points, but break below 17849 will be an alert point, break
below 17801 & 17784 will push it
back into very short term correction mode again, break below 17725---17650 & 17558 will weaken
it further, sustained break below 17452 on the closing basis will indicate that the on-going
uptrend may be in jeopardy and sustained break below 17326 may accelerate the
fall. Most importantly please note that its last lair of solid support range is
17274---17220---17145(figures will
change every day) sustained break below this range on the closing basis
could push it into deep short term or medium term correction mode.
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 and above its important point
of 17849 also but could not cross
the all-time high of 17947.75 in the
3rd attempt which is
concerning, furthermore certain important technical indicators are giving weak
signal on the daily chart which may drag it down in coming days if it does dot
move above 17947.75 and sustain on
the closing basis. Therefore in wake of weak technical indicators one has to be
cautious and extremely alert in the long trade at least till the indicators
turn positive or it closes above 17947.75
and sustain on the closing basis. The short term bias has also turned
positive now.
In view of the above observation, for
safe traders long trade can be tried if it moves above 17947.75 and maintain for some time or on decline near 17849 but not below it. However, aggressive traders can also
try long trade on decline near 17725
but not below it. Please note that long
trade below 17801 could be a risky affair for the day. It is in the long
term uptrend but correction always happens, 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. But please
be extra careful in short trade because it is in a 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 17947.75 and maintain for some time
with a stop loss of 17880. It is for both the traders.
Or
Buy on decline near 17849 but not below it with a stop loss of
17775. It is for both the traders.
Or
Buy on decline near 17725 but not below it with a stop loss of
17640. It is for the aggressive traders and could be a slightly risky trade.
2. Sell if it does not move
above 17950 I first one and half hour of trade with a stop loss of 17990. It
could be a highly risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17840
and maintain for some with a stop loss of 17910. 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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