Open—36514.15---High—36578.95---Low—35991.50---Close—36044.75 on
22.4.2022.
Support:35926.30/35696/35585.20/35481.70/35327.90/35016.30/34817.50/34233/34018.45/33908/32415.25/32376.50/32155.55/31906.55.
Resistance:36151.95/36298.35/36373.60/37264.45/37319.05/37346.80/36651.85/36827.60/37581.05/37708.75/37891.90/37988.60/38112.75/38377.25/38461.70/38765.85/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
The week
under review from 18.4.2020—22.4.2022, it moved in a range of 1200 points
during the week but closed near the lower end of the week and breaking half of
its critical points range of 36827.60---36373.60---36298.35---35761.13---35585.20---35481.70
which is concerning but it
is still holding the other half of the range 35761.13---35585.20---35481.70 which is slightly comforting. It is
important to mention here that it has penetrated down its long term moving
averages range of 37350---35825 also
which is highly concerning, but still holding on to the lower end
of it, therefore if it manages to hold the range of 35825----35481.70
range then it may still stage a bounce back but it will gain strength only if
it move above 37350 and sustain on the closing basis. Similarly
sustained break below 35825 on the closing basis could put the long term
uptrend in potential danger and may end it also and sustained break below 35481.70
may accelerate the fall, which may please be noted.
It is into medium term
corrective mode now, furthermore certain important technical indicators have
also turned weak on the daily & weekly chart and most importantly if it
does not give sharp bounce back from here and sustain then it may turn weak on
the monthly chart also this month end, which would be highly concerning. The
indicators are exhibiting tremendous weakness as of now, therefore further fall
looks inevitable and it may drag it down to 35400 levels or below.
Please note that moving down if it holds 34439 levels then there is a
possibility of a bounce back from there else down move will continue with in
between short relief rallies, so be alert and careful particularly in the long
trade. The long term uptrend is threatened now and short & medium term
trend is down as of now.
In view
of the above observation safe traders should avoid long trade till correction
completion sign emerges. However, aggressive traders can try long trade near or
within the range 35585---35400 and
then near 34439 but not below it
with a stop loss of 35200 and 34200 respectively. Please trail your
stop loss in case of profitable trade to avoid losses. Since it is in
corrective mode long trade could be a risky affair, therefore one should be
very vigilant and cautious in the long trade. It is suggested to avoid long
trade now and adopt sell on the rise strategy at appropriate points or sell on
the price breakdown with self defined stop losses for a possible intraday
corrective gain till it gets out of corrective mode. The bias is negative now.
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.
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.
