Open—38913.05---High—38929.95--Low—38346.05---Close—38560.20 on 11.11.2021.
Support:38377.25/38112.75/37708.75/37315.20/36876.35.
Resistance: -38873.80/39292.80/40011.15/40160.20/41367.25/41829.60/41965/42036/42222.
(Bold and underlined
figures are most important)
It opened on a negative note and slipped
down further and finally closed with a loss of 463.05 points. It is still into
short term correction mode. It is way below its pullback threshold point of 39169(it may change) and also below its
short and some medium term moving averages which is a very weak indication and
if it does not bounce back above the averages in shortest possible time then
down move may deepen. Furthermore it is decisively below its first lair of
critical support range of 40868—40580---40262(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 38399---38207---37968(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 an accelerated fall. Moving down further its other important
support points are at 36876.35---36637---36525.95(figure may change), please
note that sustained break below 36637 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, now it is below its short and some medium term moving averages and also below its pullback threshold point of 39169 (figure may change) which is a very weak sign and if it does not move above it again in shortest possible time and sustain on the closing basis then down move may continue. However moving up from here its critical resistance points could be at 39169---39727---40011.15---40128---40160---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 36637(figure
will change every day). It is into short term correction mode and below its
pullback threshold point of 39169,
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
weak therefore it seems that the accelerated fall may continue 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 and also below its pullback threshold point of 39169(figure may change) therefore for
safe traders long trade should be avoided till it gives visible sign of
correction completion or it closes above the pullback threshold point of 39169. However, aggressive traders can
try long trade in the range of 38399---38207---37968
but not below it for pullback gains. 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 on decline near or within the range of 38399---38207---37968
but not below it with a stop loss of 37850. It is for the aggressive traders
and could be a highly risky trade.
2. Sell on the rise near or
within the range of 39170---39250 with a stop loss of 39350. It could be a
highly risky trade but worth trying for intraday gains.
Or
Sell near if it remains
below 39120 in first one and half hour of trade with a stop loss of 39250. It
could be a risky trade but worth trying for intraday gains.
Or
Sell if it moves below 38346
and maintain for some time with a stop loss of 38570. 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.
