Open-34577.50--High-34759.85--Low—33597.55—Close-33856.80
on18.3.2021
Support:33625/32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70
Resistance34430.65/34568/34658.70/34803.60/34893.25/34973/35428.15/35584.60/35648/35815.75/35884/36086/36397/36455/36466/36477/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
It was already on a weak technical footing therefore
down move continued and it closed with a loss of 372.44 points today. In last five days including today it has
fallen by around 2900 points on the
intraday basis and more than 2075
points on the closing basis which indicate that weakness is growing which could
lead to further fall from here in coming days. It seems that it may be changing
trajectory. 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 correction mode and has
been relentlessly falling for the last 5
days and in the process it has broken its short, medium and some long term
moving averages and other technical parameters also, which indicates further
fall may be ahead in coming days if it does not bounce back above its important
points mentioned above shortly, chances of which looks slim at this point of
time. However its key support level for the day is placed at 33540( medium term rising trend line, this
figure will increase every day) if it manages to hold this mark then it may
give a relief rally but a reasonable pullback up move can only be expected if
it moves above 34282 &34568 (figure
can change) and sustain on the closing basis, it can pick up momentum above
34568, else it will continue the
down move and sustained break below 33540
on the closing basis can drag it down to 30000
level or even beyond, but with intermittent short relief rallies., which may
please be noted. However moving up it will face resistance at 34282---34460.35---34568---34658.70---34893.25---34976---35428.15---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 33500---33625---33342---32751---32612.92. Please note that the short term technical setup is
very weak. The short term bias is negative.
In view of the above observation, since it is corrective mode and
exhibiting tremendous 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 its rising trend line support point of 33540 for the day but not below it. But
it would be better and relatively safe to try long trade for pullback gains,
once it closes above 34282 &34568
(figure can change) and sustain. Please note that long trade in deep
corrective mode 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 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 if it holds 33540 for some time with a stop loss of 33440.
It could be a highly risky trade.
2. Sell if it moves and maintains below 33540 for
some time with a stop loss of 33640. It could be a risky trade but worth trying
for intraday correction.
Or
Sell on the rise near or
within the range of 34460---34520 with a stop loss of 34600. 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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