Open-36073.85--High-36466.45--Low—35872.25—Close-35983.65
on 9.2.2021
Support:35545/35413/35079/34792/34447/34130/34048/33700/33506/33379/33127/33010/32842.30/32613.10/32465.45/31725.85/31650.90/31510.25/31297.30/31264.05.
Resistance: 36175/36615.20/37100/37315/37946/38915/40855/42808/43051/59305.
(Bold and underlined figures are most
important)
It continued the up move for the last 9 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 for the last 2 days it has not been able to cross
its recent top of 36615.15 made on 5.2.2021 which indicate some fatigue at
the higher levels at this point of time, therefore the chances of correction
looks very imminent. 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 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 9 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 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 hugely positive as of now.
Moving down
its critical support points at -35545---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---36478---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 36080 for some time but it could
be a risky trade for the day 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 36080
for some time with a stop loss of 35940.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 maintains below 36056 for some time
with a stop loss of 36200. It could be a risky trade but worth trying for
intraday correction.
Or
Sell on the rise near or
within the range of 36500---36600 with a stop loss of 36670.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.
