Open—37083.15---High—37153.25--Low—36824.40---Close—37105.65 on 10.12.2021.
Support:36876.35/36844/36655.40/36647/36525.95/16151.95/35977.97/35810.90/35531.35/35359.25/35327.90/34817.50/34115/33908/33273.95.
Resistance: -37140/37232.20/37708.75/37891/38112.75/38377.25/38426/38932.45/39117.15/39292.80/40011.15/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
It opened on a flat note and could
not go up much higher and traded in range of 329 points during the day and finally closed with meager gain of 23.20 points. It is into medium term correction mode now.
Its immediate critical points are at 37232---36905—36862.30(figure
may change). It did break all the points intraday today, which is
concerning, but it bounced back and
managed to close below the first point
of 37232 only, so is still into very
short term correction now within the medium term correction mode, however as
long as it holds the range of 36905---36862.30(on
the closing basis) chances of pullback up move will be there and if it
moves above 37982 and sustain then
it may gain good up momentum, but if it breaks below 36905 then the long term uptrend
will be in jeopardy again and break below 36862.30
on the closing basis may end the pullback rally hope and it may resume down
move again, which may please be noted. Moving up from here it will face stiff
resistance from its critical points at 37232---37398---37477---37591---37871---38182---38440---38690---40418---40723---41040
(figures may change) and to regain the steady up momentum again it
has to move above this range and sustain, chances of crossing this range and
sustain above it looks tremendously weak as of now. Similarly moving down its
important support points will be at 36905---36862.30---36844---36647---36525---36497---36327---36151---35696.75---35359.25---35327.90
(figure may change). Please note that looking at last two days price pattern it
seems that it is expected to give a big move on the either side in next 1—2
trading session, so be alert and watch out.
It is still into medium term
correction mode, but above its short term moving averages on the daily chart,
which is a positive sign, but it is still below it on the weekly chart. It is
still below almost all of its medium term moving averages on the daily chart,
therefore it has to be seen whether it sustain above its short term moving
averages and move above its medium term moving averages or not in next 2-3 trading session. Furthermore it is
way below some of its long term parameters which are in the range of 38182---41036(figure will change every day)
therefore it is still not out of woods and the ongoing up move is just a good pullback rally as of
now and you are well aware that these rallies can fizzle out abruptly. But please note that few important technical indicators which
were weak on the daily and weekly chart for some time, but some indicators are
giving positive indication on the daily chart now, therefore if it holds the
key levels as mentioned above for the next few days then the chances are that
it may pick up good and steady up momentum in coming days/weeks, else it may
resume down move again. The short term trend has improved a bit but it has to
be seen how it pans out in next few days, because it is still in corrective
mode. The long term uptrend is intact as of now. It is suggested to be alert in
long trade below 36905 (figure may
change) and avoid long trade below 36850(figure
may change) for sure.
It is
important to mention here that pullback rallies are treacherous in nature and
can end abruptly, it is therefore suggested that one should be extremely alert
and cautious in the long trade initiated for pullback gains.
In view of the above, it is still
into medium term correction mode now, but since it closed above its pullback
threshold point of 36862.50 and long
term uptrend upholding point of 36905(figure
will change every day) therefore long trade can be tried if it holds the
range of 36905---36862.30 on decline
or if it moves above 37398 and
maintain for some time for pullback gains. However aggressive traders can also long
trade if it moves above 36285 and
maintains above it for some time. I strongly caution here that long trade in a
corrective mode for pullback gains could be a risky affair; therefore one
should be extremely cautious and vigilant in the long trade at this point of
time. It is still in corrective mode;
therefore short trade can be attempted on the rise at
appropriate point or can be tried on the price breakdown for taking advantage
of the down move 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 in the range of 36905---36862.30 but not below
it with a stop loss of 36760. It is for both the traders. It could be a risky
trade.
Or
Buy if it moves above 37285 and maintain for some time with a
stop loss of 37050. It is for the traders. It could be a risky trade.
Or
Buy if it moves above 37398 and maintain for some time with a
stop loss of 37250. It is for both the traders. It could be a risky trade.
2. Sell on the rise near or
within the range of 37600---37675 with a stop loss of 37780. It could be a
risky trade but worth trying for intraday gain.
Or
Sell near if does not move
above 37398 in first one and half hour of trade with a stop loss of 37490. It
could be a risky trade but worth trying for intraday gain.
Or
Sell if it moves below 37080
and maintain for some time with a stop loss of 37300. It could be a risky trade
but worth trying for intraday gains.
Or
Sell if it moves below 36840
and maintain for some time with a stop loss of 36940. 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.
