Open-35458.50--High-35616.05--Low—34893.25—Close-35228.25
on 5.3.2021
Support:34893.25/34803.60/32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70
Resistance: 35379/35428.15/35584.60/35648/35815.75/25884/36086/36397/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
It is exhibiting high volatility so it can swing both
ways in coming days, it is in deep short term corrective mode and continued the
down move today and closed with a loss of 574.35
points. This kind of volatility is not good for a steady up move and if it does
not bounce back sharply in next 3-4
trading session and sustain then it can sharply move down. 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 36031---35815.75---35648---33625---32612.92(figures
can change). ). It is decisively below its first 3 key points of 36031 -- 35815.75 & 35648 therefore it is in
deep short corrective mode which can last for 4-7 days or more. Please note
that 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 still has the long term technical strength but
short term technical setup is very weak and it is into deep correction mode now
and it seems that the pullback move has also ended if it does not bounce back
above 35427(figure can change) in 1-2 days and sustain on the closing
basis. Kindly, note that to come out of corrective mode completely it has to
move above 35648---35815.75---36031
and finally above 36718 and sustain
on the closing basis, which seems slightly
tough as of now. However moving up it will face resistance at 35648---35815.75---36031---36718---36989---37100---37232.20---37708.75---37932---38215---38539---38822,
please note that sustained close above 36718
may help it to pick, up momentum and sustained close above 37100 will ensure that it may retest its all time high of 37708.75 or may go beyond also. Similarly moving down it can find support at 35018---34893.25—34658.70---34373---34114---33625.
Please note that the short term technical setup is getting jolt from time to
time so it is weak now, but the long term setup is still o.k.
In view of the above observation, it is suggested that safe traders
should avoid long trade till it closes at least above 35427 and sustain but it would be safe to try long trade if it
closes above 36031 and sustain.
However aggressive traders can try long trade if it moves above 35427 and maintain for some time or buy
on decline at appropriate points but not below 34890. Please note that long
trade could be a risky proposition because it is in corrective mode. Since it
is still in corrective phase therefore short trade 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 35427 for some time with a
stop loss of 35190. It is for aggressive traders and could be a risky trade.
Or
Buy on decline but not below 34890 with a stop loss of 34800. It
could be a risky trade.
2. Sell if it maintains below 34890 for some time
with a stop loss of 35020. It could be a risky trade but worth trying for
intraday correction.
Or
Sell on the rise near or
within the range of 35900---36000with a stop loss of 36080. 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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