Open—15079.85--High—15176.50—Low—15065.35---Close-15097.35on
25.2.2021.
Support:15069/14977.20/14899/14823.07/14753.55/14653.35/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.
Resistance:15102/15165/15257.10/15305/15325/15431.75/15471.
(Bold and underlined
figures are most important)
It opened with an up gap and went further high and at the end
closed with a gain of 115.35 points.
The gap it created is still there and it makes an effort to fill the gap in
next 3-4 trading session which is
technically possible then it can come down to 15008. It is expected that this rally may last for some time
provided it holds 15048.72(this figure
will change once it moves above 15176.50) ---14998.70 & 14888.80 on the
closing basis. Its most critical points for the year 2021 are 14024.85---13996.11
& 13981.75 and it is way above these points now and as long as it holds
these points on the closing basis uptrend will remain intact. Its other key points
are at 14998.70---14888.80---14336.34---13562.48---12430.50(except
for 12430.50 other figures can change). It is above its all the key points
now but sustained close below 14998.70
& 14888.80 can push it again in short term correction mode which can last
few day again, sustained break below 14336.34
on the closing basis will push
it into medium term correction mode and it can last even longer and most
importantly sustained break below 13562.48
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.
It continued the up move today which indicate that this rally
could last for some time provided it holds the levels of 15048.72---14998.70 & 14888.80 and then it could move up to 15127.40---15177---15244---15272.50,
please note that this rally can fizzle out also at any of these points also but
if it moves above 15272.50 and
sustain on the closing basis then it can resume the steady up move again.
Similarly moving down it can find support at 15048.72---14998.70—14888.80---14865---14825---14753---14723----14709---14675---14635
levels and can bounce back from any of these points but sustain break below 14825 as of now can end the up rally
and it could start
moving down again, but be alert in long trade below 15048 itself. Please note that the short term technical setup is
slightly weak but improving 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 15100 for some time, for safe traders it is suggested to avoid buy
on decline for the day, however aggressive traders can buy on decline also but
not below 15048. 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 sustain above 15100 levels for some time
with a stop loss of 15045.
Or
Buy on decline near but not below 15048 with a stop loss of 14985.
It is for aggressive traders and could be a highly risky trade.
2. Sell on the rise near or within the range 15200---
15245with a stop loss of 15280. It could be a risky trade but worth trying for
intraday correction.
Or
Sell if it moves and sustain below 15048 for some time with a stop
loss of 15100. It could be a risky trade
but worth trying for intraday correction.
Or
Sell if it moves and sustain below 14998 for some time with a stop
loss of 15055. It could be a risky trade but worth trying for intraday
correction.
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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Thank you for sharing your views.