Open-36763.15--High-37232.20--Low—36494—Close-36549
on 25.2.2021
Support:36397/36086/35884/35815.75/35648/35584.60/35428.15/32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70
Resistance: 36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
It continued the up move today and hit an intraday high of 37232.20 but could not sustain at the higher level and closed with a meager gain of 96.70 points. After yesterday’s robust up move today’s move lacked strength which is a weak sign. 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 is above its all the key points now but sustained close below 35815.75 & 35648 can push it again in short term correction mode which can few day again, 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.
It gave a weak up move today and broken a very short term key
point of 36701 so if this up rally to continue then it has to holds the levels of
35815.75 & 35648 and move above
36701 on the closing basis then this rally can last for few days and it could
move up to 36665---37064---37163,
please note that this rally can fizzle out also at any of the points or earlier
also but if it moves above 37163 and
sustain on the closing basis then it can resume the steady up move again.
Similarly moving down it can find support at 36370---36104---35959---35815.75---35771---35620---35584---35351---35294---35116---34976
levels and can bounce back from any of these points but sustain break below 35620 as of now can end the up rally
and it could start move down again. Please note that the short term technical setup
is slightly weak now but the long term setup is still o.k.
In view of the above observation it seems that the pull back rally may
last for few days therefore long trade can be tried for taking advantage of the
pullback rally. One can buy if it maintains above 36701 for some time, it is suggested to avoid buy on decline for
the day because it could be a risky trade, however aggressive traders can buy on decline
but not below 36490. In this context
please note that pullback rallies are treacherous in nature and can end
abruptly also therefore be alert and extremely cautious in the long trade for
pullback gains. Since it
is in pullback mode therefore short trade in general should be avoided but 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 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 36701
for some time with a stop loss of 36530.It could be a risky trade.
Or
Buy on decline near but not below 36490 with a stop loss of 36400.It
is for aggressive traders and could be a risky trade.
2. Sell if it maintains below 36400 for some time
with a stop loss of 36570. It could be a risky trade but worth trying for
intraday correction.
Or
Sell on the rise near the
range of 37165--37250 with a stop loss of 37350.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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