Open—39927.30---High—40011.15--Low—39394.25---Close-39540.50 on 19.10.2021.
Support:39375/39093/38914/38888/38780/38743/38545/38377.75/38112.75/37708.75/37315.20/37200/36615/36525.95/36317/36248/36151.95/35531/34817.50.
(Bold and underlined
figures are most important)
It finally corrected today and closed with a loss of 144.30 points. Furthermore it has given a trend reversal today but since it is in strong uptrend, therefore watch out how this reversal pans out in next 2-3 trading sessions and most importantly please note that after more than 2500(intraday) points of vertical rise in 8 days it should correct reasonably well to resume the steady up move again therefore this meager correction does not seem enough and it may correct further from here. So one should be alert and cautious in the long trade for the next 2-3 trading sessions because chances are that the correction could deepen. However as long as it holds the range of 39271---39189---39100 on the closing basis the up move should continue with intermittent correction. Moving up it will face resistance at 39695---40011---40291---40498---40680---40855, it could correct from any of these points and then may resume the up move again or may break down also which may be kept in mind. Please note that its most important and critical resistance range is between 40118---39860---39540(figure will change every day) and if it moves above this range and sustain on the closing basis then it could be in a very strong up momentum. Similarly moving down its critical support points could be at 39271---39189---39100---38785---38620---38571 (figure may change), it may bounce back from any of these points, break below the range of 39271---39189---39100 will push it into very short term correction mode, be alert if it slips below 39271, break below 38785 will push it into short term correction mode, break below 38571 will push it into deep short term correction mode, which may please be noted.
It is important to mention here that its
long term technical setup is strong and good for the
uptrend to continue. The short term bias is also positive as of now.
Furthermore except for one other important technical indicator have also turned
positive which may accelerate the up momentum in coming days. I would like to
caution here that although it is on a very sound technical footing as of now and
further rise is indicated, but with every rise in it the risk element is also
increasing, so be alert and careful in your long commitment henceforth.
In view of the above , long trade can
be tried if it moves above 39700 and
maintain for some time or buy on decline at appropriate points or near or
within the range of 39271---39189---39100 but not below it. In light of trend reversal
it could correct further from here, so long trade could be a risky affair,
therefore one should be extremely cautious in the long trade at this point of
time. It is in the long term uptrend but
correction always happens as it happened today, 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
be extra alert in the short trade because it is in 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 on decline near or within the range of 39271---39189---39100 but not below it with a stop loss of 39000. It is for both the
traders and could be a highly risky trade.
Or
Buy if it moves above 39700 and maintain for some time with a
stop loss of 39520. It is for both the traders and could be a risky trade.
2. Sell if it does not move
above 39850 in first one and half hour of trade with a stop loss of 39900. It could
be a highly risky trade but worth trying for intraday gains.
Or
Sell on the rise near or
within the range of 39950---40050 with a stop loss of 40125. It could be a
risky trade but worth trying for intraday gains.
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.
