Open—36830.90---High—36868.90--Low—35904.10---Close—36025.50 on 26.11.2021.
Support:35977.95/35810.90/35531.35/34817.50/34115/33908.
Resistance: -36151.95/36525.95/36647/36655.40/36876.35/37140/37232.20/37708.75/37891/38112.75/38377.25/38426/38932.45/39117.15/39292.80/40011.15/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important)
It opened with a down gap and then
plunged down sharply and closed with a colossal loss of 1339.25 points. It is still into
medium term correction mode and break below 35761.25 will push it into long term correction mode, which may
please be noted. It is below its short term moving averages on the daily and
the weekly chart, below all its medium term moving averages and also below some
of its long term parameters on the daily chart, which is a very weak indication
and if it does not bounce back sharply and move above at least some of the key points
in shortest possible time then the fall may continue. Please note that looking
at today’s colossal fall sharp bounce back is very less likely in coming
days/weeks. Moving down further its
other important support points are at 35904.10---35359.25---34999---34817.50---34115---33908
(figure may change), please note that
as it has decisively broken its
long term uptrend upholding point of 36828(figure
will change every day) today which is very concerning and sustained break below 34999(figure will change every day) may end the long term up trend
and it may get into bear market. Similarly moving up it will face stiff
resistance from its critical points at 36151---36525.95---36876.35---37477---37591---37871---37989---38001---38244---38467---40422---40735---41032
(figures may change) and to regain the steady up momentum again it
has to move above this range and sustain, but looking at the last few days
price movement and particularly today’s fall chances of crossing this huge resistance
range is very slim or say negligible at this point of time.
It is important to mention here that
it is way below its correction completion point of 38796---39959.70 & 40489,
its pullback threshold points are at 36373---36662.40---36908.55---37302.55
(figure may change) now it is below all these points, please note
that if it closes above 36373 and sustain then it may give a very weak pullback
up move, if it closes above 36662.40 &36908.55 and sustain then it may get feeble strength in the up move and if
it closes above 37302.55 and sustain
then chances are that it may give slightly better and moderately strong
pullback move mind you. But the overall short term technical setup is terribly
weak as of now and the potential direction is down now.
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.
It is important to mention here that its
long term uptrend has got a severe jolt today as it has decisively broken its
upholding point of 36828(figure will change every day), which is very concerning and indicates further fall
ahead. It is into medium term correction mode, it is below its all critical
support points also as mentioned above which is all the more bad sign. Furthermore,
please note that few important technical indicators are also weak on the daily
and weekly chart which indicates that it could seek much lower levels in coming
days/weeks with in between short relief rallies; therefore it seems that the
fall may continue if the technical indicators or the price pattern does not
improve fast. Since it is in medium term corrective mode therefore sell on the
rise strategy should be adopted till visible sign of correction
completion emerges. The, short term bias is hugely weak and negative.
In view of the above, it is into medium term correction mode and also below its important pullback threshold point of 37302.55, therefore for safe traders long trade should be avoided and can only be tried if it closes above 37302.55 and sustain for the pullback gains. However, aggressive traders can try long trade if it sustain above today’s close of 36025.50 for some time, else avoid. I strongly 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 therefore suggested to avoid long trade now. Please note that its long term uptrend is in question now, therefore short trade should 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 if it sustains above today’s close of 36025.50 for some
time with a stop loss of 35900. It is for the aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or
within the range of 36700--36800 with a stop loss of 36920. It could be a
highly risky trade but worth trying for intraday gains.
Or
Sell if it moves below 35900
with a stop loss of 36060. 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.
