Open—14730.95
--High—14753.55—Low—14517.25---Close-14590.35 on 21.1.2021.
Support:14567.24/14310/14222.80/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance: 14653.45/14770/14823/14890/14920/15022/15350/15471/15868/16047.
(Bold and underlined
figures are most important)
For the last two days it moved up robustly and today also it opened
with an up gap and made a new all-time high of 14753.55 but at the end closed with a loss of 54.35 points. Today’s move was slightly concerning. Its most critical
points for the year 2021 are 14024.85 & 13981.75 and as long as
it holds these points the uptrend will be intact but sustained break below
these points on the closing basis could be a potential indication that it could
slip into long term correction mode. Its other key points are at 14628.29---14370.73---13818.20---13044---12430.50(except
for 12430.50 other figures can change). It has broken its first key point
of 14628.29 therefore it has slipped
into very short term correction mode and if it does not bounce back above it in
next 2-3 days then the down move may
accelerate and it can last for few days. Please note that sustained break below
14370.73 on the closing basis will
push it into real short term correction mode and it can last slightly longer,
sustained break below 13818.20 will
push it into medium term correction mode and it can last even longer and most
importantly sustained break below 13044 on
the closing basis can push it into long term correction mode and will
potentially threaten the uptrend and finally sustained break below 12430.50 on the closing basis will
further dampen the uptrend for sure, which may please be noted.
The overall technical setup is still looking strong. But it
broke its first key point of 14628.29
today therefore slipped into very short term correction mode and if it does not
bounce back above it and move above 14653.45
on the closing basis in a day or two then the correction may extend else it may
resume the up move again, but today’s fall gives an indication that the up
journey from here may not be smooth. Furthermore I have mentioned in my earlier
post that it has entered into a highly vulnerable zone and may make a top for
the time being in the range of- 14771---14818---14840---14890—14920—15022---15350---15471
levels or earlier also, therefore be alert and cautious in the long trade
henceforth. It is important to mention here that if it moves and sustain above 15471 on the closing basis then it may
be heading for a big rise which may please be noted. The long term bias is up as of now.
Moving down its critical support points
at 14567.24--- 14469---14310---14294.18---14199.50---14024.85---13917---13777.50---13741.65---13693.
Moving up its critical resistance points
at 14628.29---14653.45---14753.55---14771---14823---14890---14920---15022---15350---15471---15868.
In view of the above observation for safe traders long trade can be
tried if it moves and maintain above 14654
for some time, avoid buy on decline for the day. However, aggressive
traders can try long trade on decline at appropriate points or near but not
below 14281 or if it moves and
sustain above 14654 for some time. Since,
it has gotten into correction again therefore short 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 but with extreme alertness.
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 14654 for some time with
a stop loss of 14580.
Or
Buy on decline at appropriate points or near 14370 but not below
it with a stop loss of 14315.It is for aggressive traders.
2. Sell on the rise near or within the range of 14700---14760
with a stop loss of 14800. It could be a risky trade but worth trying.
Or
Sell if it maintains below 14510 for some time
with a stop loss of 14540.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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