Open—14639.80
--High—14653.35—Low—14435.70---Close-14564.85 on 13.1.2021.
Support:14551/14310/14177/14046/14024.85/13996/13981.75/13945/13777.50/13769/13721/13658.60/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance: 14602/14653.35/14840/15022/15471/15868.
(Bold and underlined
figures are most important)
It has been showing robust strength which is good for the up move. Its most
critical points for the year 2021 are
14024.85 & 13981.75 and as long
as it holds these points the uptrend will be intact off course with
intermittent correction but sustained break below these points on the closing
basis could be a potential indication that it could slip into long term
correction mode. Its other key points are at 14294.18---14199.50---13917.53---13741.65---12967.78---12430.50(except
for 12430.50 other figures can change). It is well above the key points,
which is a positive sign for the continuation of the up move. Please note that
sustained break below the key points of 14294.18
& 14199.50 can push it into very short term correction mode which can
last for 2-3 days, sustained break
below 13917.53 on the closing basis
will push it into deep short term correction mode which can last slightly
longer, sustained break below 13741.65
will push it into medium term correction mode which can last even longer and most
importantly sustained break below 12967.78 on the closing basis can push
it into long term correction mode and will potentially threaten the uptrend
also and finally sustained break below 12430.50
on the closing basis will further dampen the uptrend for sure, which may please
be noted.
The overall technical setup is looking strong
for the continuation of the up move. But the important observation is that it
has been making high for the last 15 days and new all time high for the last 13
days which indicate strength but on the other hand with each passing day it is slightly becoming scary and concerning
also because it could be a distribution also at every new high and it could be
making a top for the time being in coming days possibly in the range 14655---14840---14960---15022---15471
or earlier also. So it has already stepped in the vulnerable territory and correction
could set in after the top is in place in the expected range, therefore it
is suggested to be extra ordinarily careful and cautious in the long trade henceforth.
The bias off course is positive as of now.
Moving down its critical support points
at 14310---14294.18---14199.50---14024.85---13917---13777.50---13741.65---13693.
Moving up its critical resistance points
at 14654---14840---14940---15022---15471---15868.
In view of the above observation for safe traders long trade can be
tried if it maintain above 14565 for
some time or can be tried on decline but not below 14430. However aggressive traders can try long trade if it moves
above 14565 and maintain for some
time or on decline but not below 14294.
Since it is in the strong up move therefore short trade in general should be
avoided but short trade can also be attempted on the rise at appropriate price range
or on the price breakdown for taking advantage of the intraday corrective 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
1. Buy if it maintains above 14565 for some time with a stop
loss of 14520.
Or
Buy on decline at appropriate points or near 14430 but not below
it with a stop loss of 14390. It is for safe traders.
Or
Buy on decline at appropriate points or near 14294 but not below
it with a stop loss of 14250. It is for aggressive traders.
2. Sell near if does not move above 14655 even in
intraday in first two hours of trade with a stop loss of 14680.It could be a
risky trade but worth trying.
Or
Sell if it moves and maintains below 14390 for
some time with a stop loss of 14450.It could be a risky trade but worth trying.
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.
