Open-33420.75--High-33550.15--Low—32415.25—Close-33006.45
on19.3.2021
Support:32842.30/32718.75/32613.10/32465/32415/31725.85/31650.90/31510.25/31297/31264/30945.20/30893.65/30197.85/29687.70
Resistance33361/33625/34360.05/34568/34658.70/34803.60/34893.25/34973/35428.15/35584.60/35648/35815.75/35884/36086/36397/36455/36466/36477/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
It is exhibiting tremendous weakness and today it breached first two critical and important points of 32613.10 & 32465.45 for the year 2021 intraday, which is very weak indication but it managed to close above these points at the end. 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 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 for last few days so it was already into deep short term corrective mode , which can last for 4-7 days or more and on 24.3.2021 it decisively breached its 4th key point of 33625 therefore it is into medium term correction mode now and it can last much longer, lastly and most importantly sustained break below 32612.92 ( it did break this point intraday today)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 was already into deep short term correction mode and on 24.3.2021 it slipped into medium term
correction mode which is bad sign. Furthermore it has decisively broken its
short and medium term moving averages and some long term technical parameters
also and most importantly it has decisively broken its long term rising trend
line on 24-3-2021, which indicates
that further fall is ahead for sure but with intermittent short relief rallies
in coming days. Please note that if it sustains below 33625 on the closing basis then the correction could deepen and it
could be more painful also pricewise and time wise both. It is important to
mention here that now the pullback rally threshold point is at 33664.52(it can change), if it closes
above this point and sustain then it could give a reasonable pullback rally,
else down move will continue with very short up move below this point. Kindly
note that chances of significant up move from here looks slim at this point of
time, however moving up it will face critical resistance at-33361---33625---33664.52---34360.05---34438---34658.70---35062---35687---36460---36650.Similarly going down it can find support at-32842---32612.92---32465.45---31650---31297---31264.
It seems that it is in the process of
changing the trajectory from uptrend to the downtrend provided it does not
bounce back sharply in next couple of days, chances of sharp bounce back looks slim
at this point of time. Kindly, note that the short term technical setup
and parameters are tremendously weak. Therefore short term bias is negative as
of now.
In view of the above observation, it was in deep short term correction
mode and yesterday it gotten into medium term correction mode which is even
bigger bad sign therefore, long trade in general should be avoided till it
gives visible indication of correction completion. Long trade can only be
attempted once it closes above the pullback threshold point of 33664.52 else avoid. However aggressive
traders can try long trade on decline and the possible buy point for the day
could be near 32612 & 32465
avoid buying below 32465 for sure
because if it could sustain below this point it could go for an accelerated
fall. Please note that long trade in deep
corrective mode could be a risky proposition. Since 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 still seems 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 on decline near 32612 or 32465 with a stop loss of 32390.
It is for aggressive traders and could be a highly risky trade.
2. Sell if it remains below but near 33625 in first
one and half hour of trade with a stop loss of 33725. It could be a risky trade
but worth trying for intraday gain in weak market.
Or
Sell on the rise near or
within the range of 33850---33950 with a stop loss of 34100. It could be a
risky trade but worth trying for intraday gain.
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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