Open-35634.95--High-36615.20--Low—35545—Close-35654.50
on 5.2.2021
Support:35079/34792/34447/34130/34048/33700/33506/33379/33127/33010/32842.30/32613.10/32465.45/31725.85/31650.90/31510.25/31297.30/31264.05.
Resistance: 36175/36615.20/37100/37315/37946/38915/40855/42808/43051/59305.
(Bold and underlined figures are most
important)
It has been relentlessly one way moving up for the
last 7 days which indicates huge
strength in it for the up move to continue but at the same time the straight
rise of this magnitude makes it vulnerable for correction also. Furthermore in
last 7 days it has left 2 up gaps one on 2.2.2021 and other one today and if it makes an effort to fill these
gaps in coming days which is technically possible then it can come down to 35413 & 33305 levels which may be
kept in mind. Please note that its key points for the year 2021 are 31265.05---31297.30---32465.45
& 32613.10 and it is well above these points and as long as it hold
these points on the closing basis uptrend will remain intact. Its other key
points are placed at 34980---34812---32789---31777(figures
can change) It is well above it’s all the key points also which is a positive
sign. Please note that sustained break below 34980 & 34812 on the closing basis can push it into short term
correction mode which can last for 4-7 days
or may be more but if it corrects and does not break the aforesaid points on
the closing basis then that corrective move may end in 2-3 days also, sustained
break below 32789 will push it into
medium term correction mode and it can last even longer and most importantly
sustained break below 31777 on the
closing basis can push it into long term correction mode and will potentially
threaten the uptrend also, which may please be noted.
It corrected from the level of 32842.30 and made a bottom of 29687.70 on 28.1.2021 and since then it has been vertically moving up without a pause and hit a new all-time high of 36615.20 today off course it is exhibiting huge strength for the continuation of the up move but at the same time vulnerability of downward correction is also increasing with unabated up move as it is up by more than 6920 & 5360 points without a break on intraday and closing basis respectively in last seven days, therefore it looks scary and it may correct any time soon but as long as it holds the points mentioned in the above paragraph there is no threat to the long term uptrend. The technical setup is strong for the up move to continue but off course with intermittent down correction. Going up it will face stiff resistance at 36175---36615.20---37100---37315---37946---38915---40855---42808 levels and it may correct from any of these points also, but the overall technical setup is strong as of now. The long term bias is up.
Moving down its critical support points at -35413---34980----34812----34447---34130---33583---33305---32842---32613.10---32465.45---32451.55----32283.75---31725.85---31650.90---31510.25---31297.30---31264.05---30945.20---30893.65---30345---30260.81---30197.85---29314---29248.68.
Moving up its critical resistance points
at 36175---36615----37100---37315---37946---38915---40855---42808.
In view of the above observation long trade can be
tried but with extreme caution now because it looks highly vulnerable for a
corrective move at this point of time. Traders can try long trade if it maintains above 35655 for some time or can buy on
decline at appropriate points or near 34980 but not below it. Since it
is in strong up move therefore short trade in general should be avoided but it
can be tried after a reasonable rise in the appropriate range or on the price
breakdown for taking advantage of the intraday down correction or otherwise but
with extreme alertness and caution because the long term technical setup is very
strong 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 moves and maintain above 35655
for some time with a stop loss of 35530.It could be a risky trade.
Or
Buy on decline near but not below 34980 with a stop loss of 34780.
2. Sell if it moves and maintains below 35545 for
some time with a stop loss of 35700. It could be a risky trade but worth
trying.
Or
Sell on the rise near or
within the range of 36300---36600 with a stop loss of 36700.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.
