Open—17861.50--High—17884.60—Low—17613.15---Close-17646
on 6.10.2021.
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: -17700/17756/17792.95/17855.10/17920/17947.75/17971/18027/18081/18548/19303.70/19575/20390.09.
(Bold and underlined
figures are most important)
It opened with an up gap and went up
little further and moved in a range for some time but in the afternoon it
plunged down sharply and finally closed with loss of 176.30 points. It exhibited volatility and you are well aware that
volatility is not good for a steady movement in the market. Yesterday it closed
above it threshold point of 17801 for
correction completion but it has decisively broken it today and slipped into
very short term correction mode again. The way it behaved today further fall
from here cannot be ruled out. Moving down from here down its critical support
points could be at 17577---17541---17526---17452----17326(figure
may change), it is in corrective mode, but it may bounce back from any of
these points, it is already below its alert point of 17683(figure will change every day), 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 break below 17326
may accelerate the fall.
Kindly note that it could come out of
the corrective mode if it closes above 17801
and sustain but it has to move 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, it did move above 17849
today during the day but could not sustained and eventually slipped drastically.
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 else down move may continue. Moving up from here to
its important point of 17849 it will
face stiff resistance at 17720---17784---17801---17831---17849 and then at 17885---17920---17947.65---17971---18082---18137---18254---18548(figures
may change) and it could react from any of these points as it did today.
It is important to mention here that its
long term technical setup is still good for the
uptrend to continue. It is slipped into corrective mode again today, furthermore
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 or it closes above 17849 and sustain on the closing basis.
The short term bias is weak.
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 holds 17577
for some time 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 and 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 if it holds 17577 for some time with a stop loss of 17530.
It is for the aggressive traders and could be a risky trade.
2. Sell on the rise near or
within the range of 17730---17750 with a stop loss of 17810. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it moves below 17530
and maintain for some with a stop loss of 17600. 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.
