Open-31507.15--High-31697.55--Low—31013.65—Close-31198.40
on 25.1.2021
Support:30945.20/30893.65/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.
Resistance:21264.05/31297.30/31510.25/31650.90/31725.85/32465.45/32561/32613.10/32718.95/32842.30/33043/33127/33379/33506/34130/34447/35079.
(Bold and underlined figures are most
important)
It exhibited huge volatility and wild swing on both
the side during the day and finally closed with a meager gain of 31.15 points, which indicate inherent
weakness in it and down move may accelerate. Please note that on the downside
its most critical points for the year 2021
are 31264.05 & 31297.30 and it is
already running below these points which is terribly weak sign and if it does
not bounce back above these points and sustain above it on the closing basis
then chances are that it could go in for deep correction, which may please be
noted. Its other key points are placed at 32561---31930---29907---28895(figures
can change) It has already decisively broken its 1st & 2nd key points of 32561 & 31930 therefore
it is already in short term correction mode for sure and if it does not bounce
back sharply in next 2-3 days then
down move may accelerate and it can last for few days. Please note that sustained
break below 29907 will push it into
medium term correction mode and it can last even longer and most importantly
sustained break below 28895 on the
closing basis can push it into long term correction mode and will potentially
threaten the uptrend also, which may please be noted.
The short term technical setup is very weak and it is already into real short term correction mode and it may last for few days, but the long term trend is still o.k.as of now. It is already running below its short and some medium term averages, it is making lower top and bottom on the line chart, broken recent bottom on the bar chart also and most importantly RSI is showing huge negative divergence on the daily and weekly chart and if it remains below its short and medium term averages for some more time then the negative divergence can come into play and it may hit downside level of 30400 and then to 29450 levels or below in coming days, which may please be noted. The overall short term technical parameters and indicators have turned bad and are pointing towards further fall from here; therefore it is suggested to avoid long trade till clarity on correction completion emerges. Please note that first it has to move above its critical points of 31264.05 & 31297.30 and then above 32100(this figure will change every day) and sustain on the closing basis to give an indication that the correction has completed. The long term bias is still up as of now.
It is important to
mention here that if it does not break 31013.65 levels even in intraday and
closes above 31445.21( if 31013.65 is breached even intraday than this
figure will change downward ) and
sustain then it can give a pullback rally which may be kept in mind.
Moving down
its critical support points at -30945.20—30893.65---30345.75---30197.85---29907---29749.50---29314---29149.90---28976.75---28923.10---28894.95---28580.90.
Moving up its critical resistance points
at 31264.05---31297.30---31510.25---31526---31650.90---31725.85---31930—32264.05---32297.30----32465.45---32505---32561---32613.10---32718.95---32842.30---33010---33043---33126---33379---33681---34130---34323---34447---35440---36175---37700.
It is into real short term correction mode now therefore for safe
traders long trade should be avoided till clarity on correction completion
emerges but short trade can be attempted. However, aggressive traders can try
long trade if it holds 31298 levels
for some time or can try buy on decline at appropriate points or near but not
below 30890. Since it is in
correction mode therefore long trade could be a risky affair. Therefore it is
suggested to adopt sell on the rise strategy after a reasonable rise in the
appropriate range or on the price breakdown for taking advantage of the down
correction or otherwise but with extreme alertness because the long term
technical setup is not that bad 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
1. Buy if it maintains above 31298 for some time with a stop
loss of 31160. It is for aggressive traders and could be a risky trade.
Or
Buy on decline near 30890 but not below it with a stop loss of 30800.
It is for aggressive traders and could be a risky trade.
2. Sell if it moves and maintains below 31119 for
some time with a stop loss of 31300.It could be a risky trade but worth trying.
Or
Sell if it moves and
maintains below 31167 for some time with a stop loss of 31300.It could be a
risky trade but worth trying.
Or
Sell on the rise near or
within the range of 31500---31600 with a stop loss of 31710.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.
