Open—14952.60
--High—15014.65—Low—14864.75---Close-14924.25 on 5.2.2021.
Support:14920/14890/14823/14753.55/14653.35/14222.80/14046/14024.85/13996.11/13981.75/13818.20/13777.50/13721/13713.25/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance:15022.20/15069/15195.50/15350/15471/15868/15941/16047.
(Bold and underlined
figures are most important)
It has been relentlessly moving up for the last 5 days which indicates huge strength in
it for the up move to continue but at the same time straight rise of this
magnitude makes it vulnerable for correction also. Furthermore the gap it
created on 2.2.2021 is still there
and if it makes an effort to fill the gap in that case it can come down to 14336 level which may be kept in mind Its
most critical points for the year 2021 are
14024.85---13996.11 & 13981.75 and
it is way above these points and as long as it holds these points on the
closing basis uptrend will remain intact. Its other key points are at 14680---14570---14018---13244---12430.50(except
for 12430.50 other figures can change). It is well above it’s all the key
points also which is a positive sign. Please note that sustained break below 14680 & 14570 on the closing
basis can push it into short term
correction mode which can last for 4-7 days
or may be more but if it corrects and does not break the said points on the
closing basis then that corrective move may end in 2-3 days also, sustained break below 14018
on the closing basis will push
it into medium term correction mode and it can last even longer and most
importantly sustained break below 13244 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 corrected from the level of 14753.55 and made a bottom of 13596.75
on 29.1.2021 and since then it has
been vertically moving up without a pause and hit an all-time high of 15014.65 today off course it is
exhibiting huge strength for the continuation of the up move but at the same
time vulnerability of downward correction is also increasing with unabated up
move as it is up by more than 1410 &
1285 points without a break on intraday and closing basis respectively in
last five days, therefore it looks scary and it may correct any time soon but
as long as it holds the points mentioned in the above paragraph there is no
threat to the long term uptrend. The technical setup is strong for the up move
to continue but off course with intermittent down correction. Going up it will
face stiff resistance at 15022.20---15069---15196---15471
levels and it may correct from any of these points also, but if it moves
and sustain above 15471 on the
closing basis then there is a possibility of a huge upside ahead, so moving up 15471 would be the most critical point
for it which may please be noted. The long term bias is up.
Moving down its critical support points
at 14890---14823---14753.55---14680---14653.35---14570----14222.80---14024.85---14017.68---13996.11---13981.75---13953.75---13777.50---13741.65---13634----13596.75.
Moving up its critical resistance points
at 15022.20---15069---15195---15350---15471---15868---15941---16625.
In view of the above observation long trade can be
tried but with extreme caution now because it looks highly vulnerable for a
corrective move at this point of time. Traders can try long trade if it moves
and maintain above 15015 for some time or can buy on decline at
appropriate points or near 14680 but not below it. Since it is in strong
up move 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 and caution because the long term technical setup is very strong 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 15015 levels for some time
with a stop loss of 14270.It could be a risky trade.
Or
Buy on decline at appropriate points or near but not below 14680
with a stop loss of 14650.It could be a risky trade.
2. Sell on the rise near or within the range of 15000--15015
with a stop loss of 15060. It could be a risky trade but worth trying.
Or
Sell if it moves and sustain below 14865 for some time with a stop
loss of 14930. 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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