Open-32088--High-32131.40--Low—31119.90—Close-31167.25
on 22.1.2021
Support:30945.20/30893.65/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:21264.05/31297.30/31510.25/31650.90/31725.85/32465.45/32561/32613.10/32718.95/32842.30/33043/33127/33379/33506/34130/34447/35079.
(Bold and underlined figures are most
important)
It opened on a negative note today and as apprehended started
plunging down after some time and headed down throughout the day and closed
with a colossal loss of 1019.65 points
which is a terribly bad sign, furthermore on the downside its most critical
points for the year 2021 are 31264.05 & 31297.30 and it has
broken these points today and if it does not bounce back above these points and
sustain below it on the closing basis then chances are that it could go in for
deep correction, which may please be noted. Its other key points are placed at 32561---31930---29907---28895(figures can
change) It has decisively broken its first key point of 32561 yesterday and broken second key
point of 31930 also decisively today
therefore it has slipped into short term correction mode for sure and if it
does not bounce back sharply in next 2-3
days then down move may accelerate and it can last for few days. Please note
that sustained break below 29907
will push it into medium term correction mode and it can last even longer and
most importantly sustained break below 28895
on the closing basis can push it into long term correction mode and will
potentially threaten the uptrend also, which may please be noted.
The short term technical setup has got a jolt today, it has
already gotten into short term correction on 21.1.2021, but long term trend is still o.k.as of now. It has
decisively broken its short and some medium term averages today, it is making
lower top and bottom on the line chart, broken recent bottom on the bar chart
also and most importantly RSI is showing huge negative divergence on the daily and
weekly chart and if it remains below its short and medium term averages for
some time then the negative divergence can come into play and it may hit
downside level of 29450 or below in
coming days, which may please be noted. The overall short term technical
parameters and indicators have turned bad and are pointing towards further fall
from here, therefore it is suggested to avoid long trade till clarity on
correction completion emerges. The long term bias is still up as of now.
It is important to
mention here that if it does not break 31119.90 levels even in intraday and
closes above 31526( if 31119.90 is breached even intraday than this figure
change downward ) and sustain then it
can give a pullback rally which may be kept in mind.
Moving down
its critical support points at -30945.20—30893.65---30345.75---30197.85---29907---29749.50---29314---29149.90---28976.75---28923.10---28894.95---28580.90.
Moving up its critical resistance points
at 31510.25---31526---31650.90---31725.85---31930—32264.05---32297.30----32465.45---32505---32561---32613.10---32718.95---32842.30---33010---33043---33126---33379---33681---34130---34323---34447---35440---36175---37700.
As it has made lower top and bottom on the line chart after a long time
therefore for safe traders it is suggested to avoid long trade till it gives
visible indication of correction completion. However, aggressive traders can
try long trade if it moves and sustain above 32298 for some time or buy on decline near but not below 30890. But please note that in view of
today’s fall long trade for the day could be a risky affair. Since it has
slipped into correction again therefore it is advised to avoid long trade for
now and suggested to attempt short trade on the rise in the appropriate range
or on the price breakdown for taking advantage of the intraday down correction
or reasonable corrective move.
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
1. Buy if it maintains above 31297 for some time with a stop
loss of 31100. It is for aggressive traders and could be a risky trade.
Or
Buy on decline near 30890 but not below it with a stop loss of 30800.
It is for aggressive traders and could be a risky trade.
2. Sell if it moves and maintains below 31119 for
some time with a stop loss of 31300.It could be a risky trade but worth trying.
Or
Sell on the rise near or
within the range of 31550---31650 with a stop loss of 31725.It could be a risky
trade but worth trying.
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.
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