Open—15002.45--High—15111.15—Low—14919.90---Close-14
956.20on 8.3.2021.
Support:14899/14823.07/14753.55/14653.35/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.
Resistance:14977.20/14998.90/15069/15102/15165/15273.15/15305/15325/15369/15431.75/15471/15615/15694/15800/16028/16323/16991.50/17470.
(Bold and underlined
figures are most important)
As expected it gave both ways swing today and finally ended
the day with a meager gain of 18.10 points.
It is not exhibiting enough strength at this point of time for a steady up move
and facing rejection at 15000 plus
levels, which is a weak indication. Its most critical points for the year 2021 are 14024.85---13996.11 & 13981.75 and it is way above these points
now and as long as it holds these points on the closing basis uptrend will
remain intact. Its other key points are at 15083---14998.70---14888.80---14336.34---13562.48---12430.50(except
for 12430.50 other figures can change). It is running below its first 2 key point of 15083 & 14998.70 therefore it is in very short term correction
mode now and it could last for 4-7
days or more. Please note that sustained close below 14888.80 can push it again in the deep short term correction mode
which can last longer, sustained break below 14336.34 on the closing basis
will push it into medium term correction mode and it can last even longer and
most importantly sustained break below 13562.48
on the closing basis can push it into long term correction mode and will
potentially threaten the uptrend and finally sustained break below 12430.50 on the closing basis will
further dampen the uptrend for sure, which may please be noted.
It still has the long term technical strength, but it is in
very short term correction mode now, but chances of pullback rally is still on
as long as it holds 14695 on the
closing basis but it may pick, up momentum only if it moves and maintain above 15083 and then above 15239(figures can
change) on the closing basis, but if it fails to move above the said points
in next 3-4 trading session then it
could correct further from here. It is important to mention here that the further strong and sustainable up move
can only be expected if it moves above 15431.75
& 15471 and sustain on the closing basis else with zigzag movement it
may drift down in coming days. Therefore moving up the critical range is between
15239----15471(first two figures can
change) and it seems really tough to cross this range as of now. However going
up it will face resistance at 14998.80--15083---15176.50---15204---15239---15273.15---15369---15431.75---15471---15615---15694---15800---16028---16323. Similarly moving down it can find
support at 14888.80---14753.55---14695.25---14635.05---14529.15---14467.75---14428---14336.34---14300---14258---14222.80---14024.85---13996.11---13981.75
levels. Please note that the short
term technical setup is weak but the long term setup is still o.k. as of now.
In view of the above observation for safe traders it is suggested to
avoid long trade till it closes above 15239
and sustain on the closing basis. However aggressive traders can try long trade
if it moves and maintain either above 14998.80
or 15083 for some time or can buy on decline but not below 14919. It is important to mention here
that it is in corrective and pullback mode both and pullback rallies are
treacherous in nature and can end abruptly also as it happened few days back,
so be alert and extremely cautious in the long trade initiated for pullback
gains. Since it is not giving clear direction at this point
of time therefore short trade can also 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 good 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 maintains above 14998.80 or 15083 levels
for some time with a stop loss of 14945 & 15030. It is for aggressive
traders and could be a risky trade.
Or
Buy on decline but not below 14919 with a stop loss of 14880.
It is for aggressive
traders and could be a risky trade.
2. Sell on the rise near or within the range 15115---15160
with a stop loss of 15190. It could be a risky trade but worth trying for
intraday correction.
Or
Sell if it moves and sustain below 14880 for some time with a stop
loss of 14930. 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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