Open-32082.90--High-32464.95--Low—31863.95—Close-32424.85
on 19.1.2021
Support:32298.05/32272/31725.85/31660.75/31649.45/31510.25/31297.30/31264.05/30945.20/30893.65/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:32465.45/32613.10/32718.95/33043/33327/33681.
(Bold and underlined figures are most
important)
It bounced back sharply today which is good sign but
it should be watched for one or two days more to get confirmation that the
correction is over. It is way above its benchmark point of 29314. Its other key points are placed at 32288—31835.79----30570---29813---28801.71(figures can change) It
bounced back above all the key points today which is a positive sign. But if it
break 32288 & 31835 again then
it will slip into very short term correction and this time it could be severe ,
sustained break below 30570 on the
closing basis will push it into real short term correction mode, sustained
break below 29813 will push it into
medium term correction mode and most importantly sustained break below 28801.71 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 overall technical setup is still looking good. It
was in down correction for the last three days but robustly moved up today and
bounced back above its short term moving averages also which is a positive sign
therefore it seems that the correction may be over but it will get confirmed
only once it closes above 32505 and
sustain else there is a possibility that it may move down again. Please note
that sustained close above 32505
could take it near to its all-time high level of 32718.95 again or beyond also, but on the way up it will face major
hurdle at 32613.10.However once it closes
above its critical point of 32465.45
and sustain on the closing basis then the possibility is that it would clear
the critical resistance point of 32505
& 32613.10 also. Please also
note that if it starts sustain above 32613.10
on the closing basis then it may seek much higher levels in the coming days,
which may please be noted. It is important to mention here that if it does not
cross 32505 intraday and closes
below 32272 on 20-1-2021 and sustain
below it then it can slip into correction again therefore the important range
for the day would be between 32505---32272
breakout on the either side will give the further direction, which may please
be noted. The long term bias is up as of now.
Moving down
its critical support points at 32288—32272---31835.79---31725.85---31510.25---30945.20---30893.65---30570---30197.85---29813---29314---28800.71.
Moving up its critical resistance points
at 32465.45---32613.10---32718.95---33043---33327---33681---34130---34323---35440---37700.
In view of the above observation for safe traders long trade can only be
tried if it moves and maintain above 32575
on the closing basis, avoid buy on decline for the day. However, aggressive
traders can try long trade on decline but not below 32272 or if it moves and sustain above 32465.45 for some time. Since the correction seems to be over but
confirmation of it is yet to happen, therefore short trade can also be
attempted after a reasonable rise in the appropriate range or on the price
breakdown for taking advantage of the intraday down correction.
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 moves and maintains above 32465.45 for some time
with a stop loss of 32370. It is for aggressive traders and could be a risky
trade.
Or
Buy on decline at appropriate points or near 32272 but not below
it with a stop loss of 32200.It is for aggressive traders and could be a risky
trade.
2. Sell if it moves and maintains below 32200 for
some time with a stop loss of 32300.It could be a risky trade but worth trying.
Or
Sell if it does not move
above 32465.45 for the first one and
half hour of trade with a stop loss of 32540.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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