Open—15064.30
--High—15159.90—Low—15041.05---Close-15115.80 on 8.2.2021.
Support:15069/15022.20/14920/14890/14823/14753.55/14653.35/14222.80/14046/14024.85/13996.11/13981.75/13818.20/13777.50/13721/13713.25/13611/13597.50/13548.90/13530.71/13454.48/13399.30/13242/13145.85/13131.45/12919.88/12790.40/12730.25/12607.70/12430.50.
Resistance:15159.90/15195.50/15350/15471/15868/15941/16047.
(Bold and underlined
figures are most important)
It continued the up move for the 6th day in a row and hit a new all-time high of 15159.90
points, which indicates huge strength in it for the up move to continue but at
the same time straight rise of this magnitude makes it vulnerable for
correction also. Furthermore the gap it created son 2.2.2021 and today is
still there and if it makes an effort to fill both the gap in that case it can
come down to 15014 & 14336 level which may be kept in mind. Its
most critical points for the year 2021 are
14024.85---13996.11 & 13981.75 and
it is way above these points and as long as it holds these points on the
closing basis uptrend will remain intact. Its other key points are at 14791---14681.20---14128.70---13354.80---12430.50(except
for 12430.50 other 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 14791 & 14681.20 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 said points on the
closing basis then that corrective move may end in 2-3 days also, sustained break below 14128.70
on the closing basis will push
it into medium term correction mode and it can last even longer and most
importantly sustained break below 13354.80
on the closing basis can push it into long term correction mode and will
potentially threaten the uptrend and finally sustained break below 12430.50 on the closing basis will
further dampen the uptrend for sure, which may please be noted.
It continued its unabated up move today also which shows huge
strength in it but since it has been vertically moving up without a pause for
the last 6 days therefore vulnerability
of downward correction is also increasing with each passing straight rise day,
please note that vertical rise may have vertical fall too therefore in between
down correction is good and needed for
steady up move and it is not happening here which is slightly concerning. Therefore be alert in long trade because it
could 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 15196---17350---15471 levels and it may correct at any of these
points , but if it moves and sustain above 15471
on the closing basis then there is a possibility of a huge upside ahead, so
moving up 15471 would be the most
critical point for it which may please be noted. The long term bias is hugely
positive as of now.
Moving down its critical support points
at 15069---15022.20---14890---14823---14791---14681---14653.35---14570----14222.80---14128.70---14024.85---14017.68---13996.11---13981.75---13953.75---13777.50---13741.65---13634----13596.75.
Moving up its critical resistance points
at 15195---15350---15471---15868---15941---16625.
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 moves
and maintain above 15160 for some time or can buy on decline at
appropriate points or near 14790 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 sustain above 15160 levels for some time
with a stop loss of 15100.It could be a risky trade.
Or
Buy on decline at appropriate points or near but not below 14790
with a stop loss of 14750.It could be a risky trade.
2. Sell on the rise near or within the range of 15270--15330
with a stop loss of 15370. It could be a risky trade but worth trying for
intraday correction.
Or
Sell if it moves and sustain below 15010 for some time with a stop
loss of 15065. It could be a risky trade
but worth trying for intraday correction.
Or
Sell if it does not move above 15160 even in intraday in first one
and half hour of trade with a stop loss of 15180. It could be a risky trade but
worth trying for intraday correction.
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.
