Open-34905.05--High-35100.50--Low—34126.85—Close-34229.25
on17.3.2021
Support:33625/32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70
Resistance34687/34803.60/34893.25/34973/35428.15/35584.60/35648/35815.75/35884/36086/36397/36455/36466/36477/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
It was already on a weak technical footing ( see my post for 15.30.2021) therefore down move continued and it closed with a huge loss of 575.35 points today. Please note that further fall looks imminent with in between short up move if it does bounce back above some of its key points shortly and sustain. 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 36063.50---35815.75---35648---33625---32612.92(figures can change). It is decisively below its first 3 key points of 36063.50---35815.75 & 35648, so it is into deep short term corrective mode , which can last for 4-7 days or more, this is a very weak indication. Please note that the sustained break below 33625 will push it into medium term correction mode and it can last much 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 is into deep short term corrective mode now and its
threshold point for a possible pullback rally move are at 34687 & 34973(figures can change) , if it moves and sustain above these points it could give a
reasonable up move, else down move may continue with in between short up move.
Please note that for a steady and sustainable up move it has to cross series of tough resistance in the form
of short term moving averages, key points and critical range ahead which seems
less likely to happen at this point of time. However moving up it will face
resistance at 34687---34803.60---34973---35648---35815.75---36063.50---36177---36718---36989---37100---37232.20---37708.75---37932---38215---38539---38822.
Similarly moving down it can find support at 34114---33895---33625---33342---32751---32612.92. Please note that the short term technical setup is
very weak, but the long term technical setup is still o.k. as of now.
In view of the above observation, since it is corrective mode and
trading way below the broad range of35090---36718
for the on-going week which
indicates extreme weakness therefore, long trade in general should be avoided
till it gives visible indication of correction completion. However those
traders who want to take advantage of a possible pullback move can try long
trade if it holds 34100 but not
below it, but it would be relatively safe to try long trade once it closes at least above 34687 and then above 34973. Please note that long trade in
this type of market behavior could be a risky proposition. It is in corrective
mode therefore adopt
sell on the rise strategy or sell on the
price breakdown for taking advantage of the down move till clarity on
correction completion emerges. Short trade should be tried 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(Suggested)
1. Buy if it holds 34100 for some time with a stop loss of 33950.
It could be a highly risky trade.
Or
Buy if it moves and maintain above 34687 for some time with a stop
loss of 34580. It could be a highly risky trade.
2. Sell if it moves and maintains below 34100 for
some time with a stop loss of 34250. It could be a risky trade but worth trying
for intraday correction.
Or
Sell on the rise near or
within the range of 34870---34970 with a stop loss of 35120. 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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