Open-30976.35--High-33305.30--Low—30906.45—Close-33089.05
on 2.2.2021
Support:33043/32842.30/32613.10/32465.45/31725.85/31650.90/31510.25/31297.30/31264.05/30945.20/30893.65/30284/30202.10/30197.85/30165.65/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance: 33127/33379/33506/33700/34048/34130/34447/34792/35079/37100/37315/37946.
(Bold and underlined figures are most
important)
The pullback rally was underway on 29.1.2021(see my post for 1.2.2021) and
today after the Union Budget announcement it moved up in a robust speed and
made a new all time high of 33305.30 and
closed with a huge gain of 2523.55 points.
Please note that its key points for the year 2021 are 31265.05---31297.30---32465.45
& 32613.10 and today it have decisively crossed all these points which
is hugely positive sign and if it remains above 32465.45 & 32613.10 on the closing basis then the up move will
continue with intermittent correction. Its other key points are placed at 32451.55---32284---30261---29248.68(figures
can change) It has also crossed its all the key point decisively today
which is a positive sign too for the up move to continue. Please note that sustained
break below 32451.55 & 32284 on
the closing basis will push it in short term correction mode again which can
last for 4-5 days or more, sustained
break below 30261 will push it into
medium term correction mode and it can last even longer and most importantly
sustained break below 29248.68 on
the closing basis can push it into long term correction mode and will
potentially threaten the uptrend also, which may please be noted.
Today’s move indicate that the correction may be over and it is ready to continue the up journey again, but please note that it was an event (Union Budget) led rise today therefore it is better to watch its movement for next 2-3 days to get confirmation of the correction completion, furthermore if it was short covering led rise today then chances are that it can fizzle out also. But with today’s rise it has reversed all the technical parameters for good by crossing all tops on the line and bar chart, moved above all the short and medium term moving averages, moved above all its critical and keys points also except that the RSI negative divergence still exist. The long term bias is up.
Moving down
its critical support points at -33043—32842---32613.10---32465.45---32451.55----32283.75---31725.85---31650.90---31510.25---31297.30---31264.05---30945.20---30893.65---30345---30260.81---30197.85---29314---29248.68.
Moving up its critical resistance points
at 33126---33379---33506---33700---34048---34130---34323---34447---35440---36175---37700.
Since correction seems to be over therefore long
trade can be tried if it moves and maintain above 33306 for some time or
buy on the decline but not below 32613 and certainly not below 32465.45.
I once again repeat that today’s rise was event led therefore one should be
careful in long trade because if this rise is because of short covering then it
could fizzle out also which may please be noted. It has reversed the short term
trend therefore short trade in general should be avoided but it can 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 because the long term technical setup is good 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 33306
for some time with a stop loss of 33050.It could be a risky trade.
Or
Buy on decline near but not below 32613 & 32465 with a stop
loss of 32260.
2. Sell if it moves and maintains below 32260 for
some time with a stop loss of 32480. It could be a risky trade but worth
trying.
Or
Sell on the rise near or
within the range of 33700---33800 with a stop loss of 33875.It could be a risky
trade but worth trying.
Or
Sell if it does not move above 33306 even in
intraday in first one and half hour of trade with a stop loss of 33400
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.
Very educative
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