Open—37344.55---High—37817.55---Low—37304.45---Close—37599.15 on 18.2.2022.
Support:37581.05/37319.05/37232.20/37140/36876.35/36651/36375/36151.95/35585.20/35481.70/34817.50/34115/34018.45/33908.95.
Resistance:37708.75/37891.90/38112.75/38377.25/38461.70/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60
(Bold and underlined
figures are most important).
After making an all-time high of 41829.45 on 25.10.2021 it corrected sharply and made bottom at 34018.45 on 20.12.2021 and then it bounced back but could not surpass the previous
high. It is into corrective mode now but long term uptrend is intact as of now but
will face threat below 37551(figure may change). Since it is in corrective mode
further downside is possible from here and moving down it will find good
support in the range of 37551---35839---35585.20---35481.70,
it could bounce back from this range, but sustained break below 35839(figure can change) will
potentially threaten the long term uptrend and break below 35585.20 & 35481.70 may accelerate the fall and will get into
the long term corrective mode which may please be noted. Therefore the above
range could be considered an important range.
It is into corrective mode now and
some important technical indicators are weak on the daily chart and some on the
weekly chart too which indicates that it could fall further in coming days if
the price do not improve fast. Moving down the critical supports point could be
37551---37306---36876.36---36651.85---36525---36375---36151---35830---35585.20---35481.70,
it could bounce back from any of these points and I once again reiterate that sustained break
below 35585.20 & 35481.70 will
accelerate the fall. It is important to
mention here that it is looking relatively better then nifty on the technical
chart as of now. Kindly note that it may gain some strength for the up move if
it closes above 38462 and it may
pick up smooth up momentum only if it closes above 39425 and sustain.
In view of the above observation for
safe traders it is suggested to try long trade once it closes above 38462, however aggressive traders can
try long trade if it maintains above 37600
for some time with a stop loss of 37480
and can also try buy on decline near the above mentioned critical points with
strict stop losses because it is in a corrective mode and up rally in a
corrective mode could fizzle out abruptly also, so be alert and careful in the
long trade, but as long as it holds 37306
chances of up move is there as of now. As of now it is suggested to adopt sell
on the rise strategy or sell on the price breakdown till it gives visible
indication of correction completion.
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.
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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Thank you for sharing your views.