Open—14798.40--High—14883.20—Low—14692.45---Close-14867.35
on 1.4.2021.
Support:14862.10/14823.07/14753.55/14695.25/14653.35/14540/14467.75/14350.10/14264.40/14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.
Resistance:14888.80/14977.20/14998.80/15069/15102/15165/15176.50/15273.15/15305/15325/15369/15431.75/15471/15615/15694/15800/16028/16323/16991.50/17470.
(Bold and underlined
figures are most important)
It exhibited huge volatility during preceding week but
finally ended the week with a gain of 360.05
points, which is slightly positive sign. But it is still 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. 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 15131.35---14998.70---14888.80---14336.34---13562.48---12430.50(except
for 12430.50 other figures can change). It is below its first 3 key points of15131.35---14998.70 &14888.80 for the last few days, therefore
it was already into deep short term correction mode which could
last for 4-7 days or more, sustained
break below 14336.34 can push it into medium term correction mode, which could
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 is still into deep short term correction mode despite last
week’s up move. But it has bounced back above its short and medium term moving
averages but still below some long term technical parameters, which is slightly
concerning. However it is well above its pullback threshold point of 14540(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-14888.80---14998.70---14985---15131.32---15156.30---15176.50---15198.30---15273.15---15336.35---15431.75---15471
levels. Please note that the on-going up move is a pullback rally and it can
fizzle out at any of these points, but if it moves and sustain above 15198.30 on the closing basis then it
could retest its all-time high of 15431.75
or may go beyond also. Similarly going down it can
find support at-14848---14755.53---14710---14653---14540---14467.75---14350---14264.10---14222.80---14024.85---13996.11---13981.75---13953.75---13777.50---13596.75---13562.50.
Kindly, note that the short term technical setup has improved a bit
but still looks 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 14889 for some time or on decline but not below 14690. 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 near14690 but not below it, with a stop
loss 14640. It could be a risky trade.
Or
Buy if it moves and maintain above 14889for some time with a
stop loss of 14840. It could be a risky trade.
2. Sell on the rise near or within the range 15000---15075
with a stop loss of 15125. It could be a risky trade but worth trying in a
corrective market for intraday gain.
Or
Sell if it moves below 14690 and maintain for some time with a stop
loss of 14760. 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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