Open-35806.65--High-35902.20--Low—34658.70—Close-34803.60
on 26.2.2021
Support:32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70
Resistance: 35428.15/35584.60/35648/35815.75/35884/36086/36397/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
The on-going pullback rally behaved truly like its character and abruptly ended today and it plunged down sharply and closed near the low of the day with a massive loss of 1745.40 points. Today’s fall gives an extremely weak indication and pointing toward further fall ahead provided it remains below its key points. Please note that its critical and most important points for the year 2021 are 32613.10---32465.45---31297.30 & 31264.05 and it is well above these points now and as long as it hold these points on the closing basis uptrend will remain intact. Its other key points are placed at 35815.75---35648---33625---32612.92(figures can change). It has decisively broken its first 2 key points of 35815.75 & 35648 again therefore it has slipped into short term correction mode and it could be painful this time and could last few days, sustained break below 33625 will push it into medium term correction mode and it can last even longer and most importantly sustained break below 32612.92 on the closing basis can push it into long term correction mode and can potentially threaten the uptrend also, which may please be noted.
The pullback rally ended abruptly today shattering the short
term technical parameters which is a terribly weak sign and if it does not
bounce back sharply in next 2-3
trading session and move at least above 35379
level (this figure can change downward if it breaks 34658.70 level) as of
now and sustain on the closing basis then it may give relief rally otherwise it
will fall further for sure with intermittent short relief rallies. If it
crosses the mentioned point then it could go up to 35648---35815.75---36184---36544---36989---37100, but please beware
that the possible up rally may end abruptly again as it has ended today. Similarly
moving down it can find support at 34644---34366---33625---33342---32751---32613---32465---32312---31297---31264
levels and can bounce back from any of
these points but sustained break below 31264 on the closing basis can
potentially threaten the uptrend. Please note that the short term technical
setup is shattered again now but the long term setup is still o.k.
In view of the above observation it is suggested to avoid long trade in
general till correction completion sign emerges, however aggressive traders can
try long trade for a possible pullback rally which can happen any time again
looking at today’s massive fall. So they
can buy if it maintains above 34658
for some time but not below it but it could be a highly risky trade in light of
today’s movement. Please note that possibility of long trade could be
successful only once it closes above at least 35379 and sustain on the closing basis. In this context please also note that
pullback rallies are treacherous in nature and can end abruptly also, which you
have witnessed today; therefore be alert and extremely cautious in the long
trade for pullback gains. Since it has slipped into correction mode again and this time it seems
that it could be painful therefore short
trade should be tried 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 and caution because the long term
technical setup is still o.k. 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 maintain above 34658 for some time with a
stop loss of 34590. It is for aggressive traders and could be a highly risky trade.
2. Sell if it maintains below 34590 for some time
with a stop loss of 34700. It could be a risky trade but worth trying for
intraday correction.
Or
Sell on the rise near the
range of 35650--35750 with a stop loss of 35850.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.