Open-33588--High-33949.15--Low—33208.75--Close-33858
on 1.4.2021
Support:33665/33625/33361/32842.30/32718.75/32613.10/32465/32415/31725.85/31650.90/31510.25/31297/31264/30945.20/30893.65/30197.85/29687.70
Resistance;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 exhibited huge volatility during preceding week but finally ended the week with a gain of 539.80 points, which is slightly positive sign. But it is still way below some of its key points and if it does not bounce back above those points and sustain on the closing basis then it could start moving down again in coming days, which may please be noted. 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 is already into deep short term corrective mode , which can last for 4-7 days or more. It is doing whip-saw around 33625 which is the threshold point of getting into medium term correction mode and sustained break below this can push it into medium term correction mode which can last even longer, lastly 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 still into deep short term correction mode despite the
up move today. It is still below 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 may be ahead but with intermittent short
relief rallies in coming days. However it is above its pullback threshold point
of 33665(figure can change) so, as
long as it hold this level chances are that it could move up in coming days.
Going up it will face resistance at-33991---34360.05---34438---34658.70---35062---35687---35815.75---36460---36650
levels. Please note that it may rise from here but a significant rise is not
likely at this point of time, furthermore the on-going up move is a pullback
rally and chances are that it can fizzle out at any of these points, so be
watchful in long trade. It is important to mention here that sustained break below 33625 on the closing basis could push it into very deep correction mode and it could be more painful
also pricewise and time wise both and it could hit 30500—30000 level on the downside. Similarly
going down it can find support at-33665---33625---33303---33151---33006---32842---32612.92---32465.45---32415.25---31650---31297---31264.
Kindly, note that the short term technical setup and parameters are
tremendously weak. Therefore short term bias is negative as of now, but the
long term bias is still up.
In view of the above observation, it is still into deep short term
correction but in the pullback mode also therefore for safe trader long trade
in general should be avoided till it gives visible indication of correction
completion. However the traders who wish to take advantage of the pullback
rally can try long trade if it moves and maintain above 33991 for some time or on decline but not below 33665. Please note that long trade in deep corrective
mode and for pullback gains could be risky propositions. Since it is still in
corrective mode but pullback rally is also on therefore short trade can also be attempted
after reasonable rise or 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 33665 with a stop loss of 33540. It could
be a risky trade.
Or
Buy if it moves and maintain above 33991 for some time with a
stop loss of 33820. It could be a risky trade.
2. Sell if it remains below 33625 with a stop loss of
33880. 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 34400---34500 with a stop loss of 34600. It could be a
risky trade but worth trying for intraday gain in corrective market.
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.
No comments:
Post a Comment
Thank you for sharing your views.