Open—14306.60--High—14382.30—Low—14191.40---Close-14359.45
on 19.4.2021.
Support:14350.10/14264.40/14222.80/14024.85/13996.11/13981.75/13777.50/13596.75/13399.30/13145.85/13131.45.
Resistance:14459.50/14467.75/14528/14653.35/14753.55/14883.20/14984.15/15051.60/15176.50/15257.10/15273.15/15336.30/15431.75/15471.
(Bold and underlined
figures are most important)
It opened with a huge down gap and
went down further and made a low of 14191.40
and it ended the day with a loss of 258.40
points. It is important to note here that if it makes an effort to fill this
gap in next 3-4 days which is
technically possible then it could come up to 14559 level, but since it has broken its major rising trend line
decisively today and it is already in deep correction mode for quite some time,
therefore it may give some rise from here but filling the complete gap looks
less likely. 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 way below its first 3 key point’s of15131.35---14998.70 &14888.80 for the last so many days, therefore
it is already into deep short term correction mode and it seems that it will
last long. Please note that sustained break below 14336.34 on the closing basis will push it into medium term
correction mode which 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 is still into deep short term
correction mode. It is below its short and
some medium term moving averages,
furthermore it is well below some of its long term averages and parameters and
some important technical indicators are showing very weak sign on the weekly
chart also and most importantly it has broken its major rising trend line today
and it is placed at 14475(this figure
will scale up every day) for 20.4.2021, which gives potential indication that further fall from here looks inevitable in
coming days off course with in between short relief rallies from time to time and provided it does not bounce back within the trend line again and crosses
some of the key points, chances of which seems less likely to happen at this
point of time. Furthermore its pullback
threshold point is at 14484.12 (it can
change) and it is well below it now, please note that if it moves above it
and sustain on the closing basis then it could move up further and could give a
moderate to reasonable recovery, else down move will continue. Going up it will
face critical resistance at-14350---14467.75---14484.12---14653---14703---14753.55----14811---14840--14888.80---14998.70---14985---15131.32---15156.30---15176.50---15198.30---15273.15---15336.35---15431.75---15471
levels. Please note that sustained close below the trend line and below 14336.34 could witness further fall in it
and it could hit the range of 13750---13600
on the downside in coming days. Going down it can
find critical support at-14350---14264.10---14248.70---14222.80---14024.85---13996.11---13981.75---13953.75---13777.50---13596.75---13562.50---13399---13131.
Kindly, note that the short term technical setup looks very weak.
Therefore short term bias is negative as of now, but the long term setup is
still holding up as of now.
In view of the above observation, it is in deep short term correction mode, furthermore
it has broken its long term rising trend line today which is tremendously weak
sign and the overall short term technical setup is already weak, therefore for
safe trader long trade should be avoided till it gives visible indication of
correction completion or till it closes above 14484.12. However aggressive traders can try long trade if it holds
the range of 14310---14264. I once
again caution you that long trade in a corrective market could be risky
propositions and particularly buying on decline. Since it is still in
corrective mode and broken major rising trend line 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.
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 within the range of 14310---14264 levels with
a stop loss of 14220. It is for aggressive traders and could be a
highly risky trade.
2. Sell on the rise near or within the range 14490---14530
with a stop loss of 14570. It could be a risky trade but worth trying in a corrective
market for intraday gain.
Or
Sell if it moves below 14248 and maintain for some time with a stop
loss of 14300. 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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