Open-32529.70--High-33191.70--Low—32141.55--Close-32991.20
on 7.4.2021
Support:32842.30/32718.75/32613.10/32465/32415/32330.15/31725.85/31650.90/31510.25/31297/31264/30945.20/30893.65/30197.85/29687.70
Resistance;33361/33600/33625/34360.05/34568/34658.70/34803.60/34893.25/34973/35428.15/35584.60/35648/35815.75/35884/36086/36397/36455/36466/36477/36615.20/36647/36897/37170/37284/37708.25/38286/38520.
(Bold and underlined figures are most
important)
It did bounced back today and closed with a gain of 459.95 points and also moved above its critical point of 32613.10 for the year 2021. But this rise is not sufficient enough to get it into the up grove and for that it has continue the up move for next few days and move above at least some of its key points mentioned below ,which seems less likely at this point of time. Therefore continuation of down move looks imminent may be after some more rise from here because, it is on a very weak technical footing as of now. Please note that its critical and most important points for the year 2021 are 32613.10---32465.45---31297.30 & 31264.05 please note that to remain in the uptrend it has to sustain above these points. 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 the last few days so it is already into deep short term corrective mode, it has decisively broken its 4th key point of 33625 on 5.4.2021 so it has slipped into medium term correction mode, but it bounced back above its long term correction mode threshold point of 32612.92 which is slightly comforting. It is needless to mention here that sustained close below 32612.92 again could see an accelerated down move, which can last much longer and could be painful too and most importantly can potentially threaten the uptrend also which may please be noted.
It was into deep short term correction mode, it slipped into
medium term correction mode on 5.4.2021
and finally it has slipped into long term correction mode on 6.4.2021 but it bounced back above its
threshold point of 32612.92 which
gives it some relief but how long it will stay above it has to be seen because
the overall short term technical setup is very weak. Furthermore it is well 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 looks inevitable but with intermittent short relief rallies in coming days,
provided it does not bounce back sharply and move above some of its key points
in next few days, chances of it happening seems less likely at this point of
time. Please note that its pullback threshold point is at 33455.50(figure can change), so if it moves above it and sustain on
the closing basis then only it could continue with some up move else it will
drift down. Going up it will face resistance at-33303.90---33455.50---33588---33625---33991---34268---34438---34658.70---35062---35687---35815.75---36460---36650levels.
Please note that it may further rise from here but a significant rise is not
likely at this point of time and if it remains below 33625 then it is very likely to hit 30500—30000 level on the downside in coming days. Similarly going down it can find support at-32842.30---32613.10---32465.45---32415.25---32330---31725---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 as of now.
In view of the above observation, it is into medium term correction
mode therefore for safe trader or otherwise long trade in general should be
avoided till it gives visible indication of correction completion. It is
suggested to try long trade only once it closes above 33455.50 and sustain for the pullback gains. However the traders
who wish to take advantage of the in between up rally can try long trade on
decline if it holds 32613---32465
range or can try if it moves and sustain above 33200 for some time. Please note that long trade in medium term
corrective mode could be a very risky propositions, particularly buying on
decline. Since it is into medium term 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 on decline in the range of 32613---32465 with a stop loss
of 32330. It is for aggressive
traders and could be a highly risky trade.
Or
Buy if it moves and maintain above 33200 for some time with a
stop loss of 33100. It is for aggressive
traders and could be a risky trade.
2. Sell if it remains below 32612 for some time with
a stop loss of 32740. 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 33455---33625 with a stop loss of 33725. 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.
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