Open—14687.25--High—14723.40—Low—14461.50---Close-14496.50
on 4.5.2021.
Support:14595/14484.12/14467.75/14459.50/14350.10/14264.40/14248/14222.80/14151.40/14024.85/13996.11/13981.75.
Resistance:14653.35/14753.55/14883.20/14888.80/14984.15/15051.60/15176.50/15257.10/15273.15/15336.30/15431.75/15471.
(Bold and underlined
figures are most important)
It opened with a small up gap and
went up further but could not sustain at the upper level and plunged down in
the afternoon session to close with a loss of 137.65 points. It is still into deep short term correction mode and
below its long term rising trend-line and also below its short downtrend line
for the last three days, these are very weak signs. Furthermore today it has
fallen below its good support range of 14628---14564.50
also which weakens it further, but it is still holding the pullback threshold
point of 14454 and as long as it
hold this point on the closing basis there is some hope that it may resume the
pullback rally again, but sustain break below this point could trigger steady down move, which may please be kept in
mind .The rising trend-line is placed at 14725(this
figure will increase every day) and short downtrend line is placed at 14650(this figure will decrease every day)
for the day. Please note that it
will catch up strong momentum only once it gives upside breakout from its short
downtrend line and long term rising trend line and sustain else it may move in
a range for now and sustained break below 14454
could witness an accelerated down move.
Critical
Support points are at:--14492---14454---14350---14264---14151.
Critical
Resistance points are at:--14568.50---14628---14650---14693---14725---14753—14804---14896---14919---14943---15051---15130---15176.
Kindly note that the on-going down
move is a correction within the pullback range and as long as it holds the long
term pullback threshold point of 14454
chances of up move shall remain, but the way it has behaved in the last two
days chances of moving up is getting bleak. I caution you here that long trade
below the short downtrend line and long term rising trend-line could be a
highly risky proposition. Please note that from here bias seems mixed with a
slight tilt towards downside. It is
important to mention here that technical indicators on the weekly chart are
giving indication that major fall cannot be ruled out in coming days if these indicators
does not improve fast.
In view of the above observation for
safe trader’s long trade can only be tried if it gives an upside breakout either
from its short downtrend line or its long term rising trend-line on the closing
basis else avoid. However aggressive traders can try buy if it holds 14454 but not below it. Since it is
still into short term corrective mode therefore short
trade can also be tried after reasonable rise or can be tried on the price
breakdown for taking advantage of the down move
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 near if it holds 14454 levels but not below it with a
stop loss of 14430. It is for aggressive traders and could be a highly risky
trade.
2. Sell on the rise near or
within the range of 14650---14725 with a stop loss of 14760. It could be a
risky trade but worth trying for intraday gain.
Or
Sell if it moves and maintains
below 14430 for some time with a stop loss of 14470. It could be a risky trade but worth trying for
intraday gain.
Or
Sell if it does not move
above 14650 in first one hour of trade with a stop loss of 14680. It could be a
risky trade but worth trying for intraday gain.
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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