Open-35462.45--High-35827.30--Low—35090.75—Close-35275.75
on 8.3.2021
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)
Although it closed on a positive note with a meager
gain of 47.60 points, but it is
still in deep short term corrective mode, which is a very weak sign and indicate
that it could drift further down from here if it does not bounce back sharply
in next 3-4 trading session. . 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 short term correction mode now and it can only give a pullback up move if it moves above 35427(figure can change) and sustain on the closing basis, else correction may deepen. 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 at this point of time. 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 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 near but not below 35090.
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 35250. It is for aggressive traders and could be a risky trade.
Or
Buy on decline but not below 35090 with a stop loss of 35000. It
could be a highly risky trade.
2. Sell if it moves and maintains below 35090 for
some time with a stop loss of 35300. 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 36100. It could be a risky
trade but worth trying for intraday correction.
Or
Sell if it moves and
maintains below 34893 for some time with a stop loss of 35100. 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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