Open—14240.95
--High—14244.15—Low—14039.90---Close-14146.25 on 6.1.2021.
Support:14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.4512963/12790.40/12730.25/12607.70/12430.50/12293.90/12286.45/12246.70/12158.80/12025.45/11929.60/11802.65/11794.25/11614.50/11535.45.
Resistance: 14177/14298/14310/14602/14823/15022.
(Bold and underlined
figures are most important)
After ten days rise from the recent bottom of 13131.45 it made on 21.12.2020
it corrected today and closed with a loss of 53.25 points. But as long as it holds its critical points of 14024.85 & 13981.75 on the closing
basis the up move will remain intact. Its other key points are at 13981.55---13901.07---13604.90---13429.02---12655.15---12430.50(except
for 12430.50 other figures can change). It is well above the key points, which
is a positive sign for the continuation of the up move. Please note that
sustained break below the key points of 13981.55
& 13901.07 can push it into very short term correction mode which can
last for 2-3 days, sustained break
below 13604.90 on the closing basis
will push it into deep short term correction mode which can last slightly
longer, sustained break below 13429.02
will push it into medium term correction mode which can last even longer and
most importantly sustained break
below 12655.15 on the closing basis
can push it into long term correction mode and will potentially threaten the
uptrend also 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 looking strong for the continuation of
the up move. Today’s correction was very normal and I once again reiterate here
that as long as it holds its critical points of 14024.85 & 13981 on the closing basis the uptrend will remain
intact, but sustained break below these points on the closing basis could push
it into good correction mode. It is therefore suggested to avoid long trade
below 14024.85 & 13981 and should
try only at appropriate points on decline or once it bounces back above the
said points again. Similarly moving up it has very tough critical point at 14177 & 14310 but once it crosses 14310 and sustains on the closing basis
then the next tough point would be at 15471,
however reaching to this mark may not be easy and it will face stiff resistance
on way to this mark at 14602---14823---15022---15471---15868.
The bias is hugely positive as of now
but vulnerability of correction is also there as long as it does not cross 14310 levels and sustain on the closing
basis, which may please be noted.
Moving down its critical support points
at 14046---14024.85---13981---13953.75---13901---13819---13777.50---13688---13556---13517---13429---13394---13345---13209---13133---13081---12924---12889.
Moving up its critical resistance points
at 14177---14298---14310---14602---14823---15022---15471---15868.
In view of the above observation long trade can be tried if it moves
and maintain above 14200 for some time
or can be tried on decline but not below 14025.
However aggressive traders can try long trade if it move above 14177 and maintain for some time. Since
it is in the strong up move therefore short trade in general should be avoided
but short trade can also be attempted on the rise at appropriate price range or
on the price breakdown for taking advantage of the intraday 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 moves and maintains above 14200 for some time with
a stop loss of 14160.It is for safe traders.
Or
Buy if it moves and maintains above 14177 for some time with a
stop loss of 14140.It is for aggressive traders.
Or
Buy on decline at appropriate points or near 14025 but not below
it with a stop loss of 13970.
2. Sell near if does not move above 14200 even in
intraday in first two hours of trade with a stop loss of 14250.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 13981 for
some time with a stop loss of 14030.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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