Open—14583.40
--High—14619.90—Low—14357.75---Close-14371.90 on 22.1.2021.
Support: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: 14567.27/14653.45/14770/14823/14890/14920/15022/15350/15471/15868/16047.
(Bold and underlined
figures are most important)
After yesterday mild
correction it plunged down sharply today and closed with a huge loss of 218.44 points which is bad sign and it
could severely disturb the ongoing up move. 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 on 21.1.2021 and just shade above its second key point of 14370.73 therefore it has already
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 short term technical setup has got a severe drubbing
today, it has already gotten into very short term correction mode on 21.1.2021, but long term trend is still
o.k.as of now. It has decisively broken its short term moving averages today and
most importantly RSI is also showing negative divergence on the daily chart and
if it remains below its short term moving averages for some time then the
negative divergence can come into play and it may hit downside level of 14280 or below, which may please be
noted. The overall short term technical parameters and indicators have turned
bad and are pointing towards that it may witness further fall from here
provided it remains below its short term moving averages; 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 14357.75 levels even in intraday and
closes above 14451.16( if 14357.75 is breached even intraday than this figure
will change downward ) and sustain then
it can give a pullback rally which may be kept in mind.
Moving down its critical support points
at 14370.73---14310---14222.80--- 14024.85---13981.75---13818.20---13777.50---13145.85---13131.45---13044.
Moving up its critical resistance points
at 14451.16---14509---14555---14628.29----14653.45---14753.55---14771---14823---14890---14920---15022---15350---15471---15868.
Since it has gotten into very short term correction mode therefore for
safe traders long trade should be avoided till clarity on correction
completion emerges. 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 14451 for some time. But please note that in view of today’s fall
long trade for the day could be a risky affair. Since, it is in correction mode
again therefore short can be attempted
after a reasonable rise in the appropriate range or on the price breakdown for
taking advantage of the intraday down correction or otherwise but with extreme
alertness because the technical setup is not that bad as of 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.
TRADING STRATEGY
1. Buy if it moves and maintains above 14451 for some time with
a stop loss of 14400. It is for aggressive traders and could be a risky a risky
trade.
Or
Buy on decline at appropriate points or near 14281 but not below
it with a stop loss of 14210. It is for aggressive traders and could be a risky
a risky trade.
2. Sell on the rise near or within the range of 14450---14510
with a stop loss of 14560. It could be a risky trade but worth trying.
Or
Sell if it maintains below 14281 for some time
with a stop loss of 14320.It could be a risky trade but worth trying.
Or
Sell if it maintains below 14222 for some time
with a stop loss of 14265.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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