Open—14604.15--High—14637.90—Low—14506.50---Close-14617.85
on 5.5.2021.
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 an up gap and went up further
and ended near the high of the day with a gain of 121.35 points, so it almost recovered
its yesterdays loss. But it is still
into deep short term correction mode and below its long term rising trend-line
and also below its short downtrend line, which is a weak signs. The good thing
is that it is within its good support range of 14630---14564.50 now and also well above its 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 14740(this
figure will increase every day) and short downtrend line is placed at 14630(this figure will decrease every day)
for the day. Please note that it
will catch up strong up momentum only once it gives upside breakout from both
these line , here please note that even if it gives breakout from the short
downtrend line and sustain then chances are that it could bounce back above its
major rising trend line also in coming days, else it may move in a range for
now and sustained break below 14454
could witness an accelerated down move in it.
Critical
Support points are at:--14564.50---14492---14454---14350---14264---14151.
Critical
Resistance points are at:--14630---14693---14740---14753—14804---14896---14919---14943---15051---15130---15176.
Kindly note that the on-going price movement is 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 volatility it is
exhibiting is not good for a steady up move which may be kept in mind. 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 as of now. 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 technical
indicators does not improve fast.
In view of the above observation for
safe trader’s long trade can only be tried if moves above 14635 and sustain for some time else avoid. However aggressive traders
can also try buy on decline at appropriate points or near 14454 but not below it. Please note that long trade below 14635 could be a risky affair for the
day. Since it is still into deep 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 at appropriate points
with self defined short stop loss or near 14454 but not below it with a stop loss of 14430. It
is for aggressive traders and could be a highly risky trade.
Or
Buy if it moves above above 14635 and maintain for some time
with a stop loss of 14595.
2. Sell on the rise near or
within the range of 14740---14760 with a stop loss of 14785. 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.
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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