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Open—48124.20--High—48223.05--Low—47851.15---Close—48021.10
on 8.5.2024.
Support: 47737.20/47279.80/46919.70/.
Resistance:48161.25/48203.45/48292.25/48636.45/ 49057.80/49173.36/49262/49396.75/49446.69/49676/49732/49883/49974.75.
It opened on a negative note and thereafter had
both side moves during the day and finally ended the day with a loss of 264.25 points. It
is already into deep correction mode for its recent rise. It has been falling
for the last 6 days in a row, which exhibits gross weakness in it, therefore
it is likely to head down further from here, but it may have a short relief
rally any day because of the straight fall before resuming the down move again.
However if in the possible relief rally it closes above its few important key
points as mentioned below then the up move can extend further.
STRENGTH:-
1. It is in the long term uptrend now.
2. The short
range for it now is between 49974.75---47737.20 and the long range is
between 49974.75----46579.05.
3. Moving
down the possible good bounce back point could be at 47876---47737---47380---47258---46823---46579.05,
sustained break below 47737.20 will weaken it further, sustained
break below 46823 will threaten the long term uptrend and finally
sustained break below 46579.05 could be a warning sign and can drag it
down to much lower levels. So 46823 & 46579.05 is a very strong
bounce back support points.
WEAKNESS:-
1. It is into
deep correction mode now for its recent rise.
2. It is below
its most critical points of 48203.45---48292.25 &48636.45, please
note that it is must to stay above these point to keep up the up momentum going
in the year 2024.It will catch up momentum above 48636.45 only.
3. It is
below its important short term moving averages range of 48482---48387---48322(figures
will change every day) on the daily chart, sustained close above this range
may provide good strength for the up move to continue.
4. It is
below its pullback threshold point of 48353.32(figure may change), if it
closes above it and sustains then it will give a ray of hope for a meaningful
up move.
5. It has broken its recent bottom on the line
chart.
6. Technical
indicators are weak on the daily/weekly and monthly chart, pointing that it
could head down to much lower levels in coming days.
7. The price
action is also showing weakness.
OVERALL VIEW:--The overall technical setup is weak as of now and since it is in correction mode therefore
it is sell on the rise market now or sell on the price breakdown. So for safe
traders it is suggested to avoid long trade till it closes above 48353.32 at
least and sustain or till visible sign of correction completion emerges on the
down side. But aggressive traders can try long trade on decline at important support
points or range for pullback gains. The long term trend is up, but the short
term bias is negative.
TRADING CALL: --
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2. Short
trade can be tried on the rise near or within the range of 48350 —48450 with
a stop loss of 48550. It could be a risky trade but can be tried for
intraday corrective 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.
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.
Thanks
Narendra Kumar Surana
Email—suranank@gmail.com
Mobile—8240951127/9831313654.
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