Open—39674.05---High—39674.05--Low—38932.15---Close—39438.25 on 8.11.2021.
Support:39292.80/38377.25/38112.75/37708.75/37315.20/36876.35.
Resistance: -40011.15/40160.20/41367.25/41829.60/41965/42036/42222.
(Bold and underlined
figures are most important)
It opened on a positive note but finally
closed with a loss of 135.45 points. It is still into short term
correction mode. Furthermore it is decisively below its first lair of critical
support range of 40785—40493---40180(figure will change every day) which is
concerning and if it does move above it in a short period of time further fall may
be ahead with in between short relief rallies. Please note that it may regain up
momentum only if it closes above this range and sustain. Its second lair of critical support range is 38300---38107---37858(figure
will change every day), it may bounce back from any of these points but
sustained break below the range will put the on-going uptrend in jeopardy and
it may witness accelerated fall. Moving down further its other important
support points are at 36876.35---36537---36525.95(figure may change), please
note that sustained break below 36537 will put the long term
uptrend in potential danger.
It is important to mention here that it could come out of corrective mode if it closes above 40661 & 41231 and sustain, but since it is above its pullback threshold point of 39229.75 (figure may change) and if it sustains above it then the pullback rally may continue and it may make an effort to come out of the corrective mode also and if it moves above 41149 and sustain on the closing basis then it may retest its all-time high of 41829.60 or may go beyond it also, similarly break below 39229.75 may weaken it and it may resume the down move again. Moving up from here its critical resistance points could be at 39727---40011.15---40128---40247---40537---41027---41149---41367.25---41830(figures may change) and it could react from any of these points and then may move up again or may break down also which may please be noted. Kindly note that now it is a sell on the rise markets till visible sign of correction completion emerges.
It is
important to mention here that pullback rallies are treacherous in nature and
can end abruptly; therefore one should be extremely alert and cautious in the
long trade initiated for pullback gains.
It is important to mention here that its
long term technical setup still looks good for the
uptrend to continue as long as it holds 36537(figure
will change every day). It is into short term correction mode but in a
pullback mode now, but it is below its few critical resistance points also as
mentioned above, which indicates weakness, therefore further fall cannot be
ruled out if it remains below it. Furthermore please note that few important
technical indicators are also turning weak therefore it seems that fall may accelerate
in coming days/weeks if it does not move above its key points mentioned above. Since
it is in corrective mode therefore sell on the rise strategy should be adopted till
visible sign of correction completion emerges. It is suggested in general to
avoid long trade as of now.
In view of the above, it is into
correction mode but above its pullback threshold point of 39229.75(figure may change) therefore for safe traders long trade
can be tried if it holds 39402 level
for some time or if it moves above 39575
and maintain for some time, else avoid. However, aggressive traders can also try
long trade on decline near 39229.75 but
not below it or on sharp decline in
the range of 38300---38100 but not
below it. I caution here that long trade in a corrective mode could be a highly
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 now in correction mode, therefore short
trade can 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 39402 for some time with a stop loss of
39320. It is for both the traders and could be a risk trade.
Or
Buy if it moves above 39575 and maintain for some time with a
stop loss of 39390. It is for both the traders and could be a risk trade.
Or
Buy on sharp decline at appropriate points or near or within the
range of 38300---38100 but not below it with a stop loss of 37800. It is for
the aggressive traders and could be a highly risky trade.
Or
Buy on decline near 39229.75 but not below it with a stop loss
of 39100. It is for the aggressive traders and could be a highly risky trade.
2. Sell on the rise near or
within the range of 39900---40000 with a stop loss of 40100. It could be a
highly risky trade but worth trying for intraday gains.
Or
Sell if it moves below 39400
and maintain for some time with a stop loss of 39500. It could be a risky trade
but worth trying for intraday gains.
Or
Sell if it moves below 39100
and maintain for some time with a stop loss of 39250. 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.
