Open—14888.60--High—14919.45—Low—14467.75---Close-14529.15
on 26.2.2021.
Support:14222.80/13953.75/13777.50/13596.75/13399.30/13145.85/13131.45.
Resistance:14653.35/14753.55/14823.07/14899/14977.20/15069/15102/15165/15257.10/15305/15325/15431.75/15471.
(Bold and underlined
figures are most important)
The on-going pullback rally behaved truly like its character
and abruptly ended today and it plunged down sharply and closed near the low of
the day with a colossal loss of 452.60
points. Today’s fall gives an extremely weak indication and pointing toward
further fall ahead provided it remains below its key points. Its most critical
points for the year 2021 are 14024.85---13996.11 & 13981.75 and it
is way above these points now and as long as it holds these points on the
closing basis uptrend will remain intact. Its other key points are at 14998.70---14888.80---14336.34---13562.48---12430.50(except
for 12430.50 other figures can change). It has decisively broken its first 2 key points of 14998.70 & 14888.80 again therefore it has slipped into short
term correction mode and it could be painful this time, sustained break below 14336.34 on the closing basis will push it into medium term
correction mode and it can last longer and
most importantly sustained break below 13562.48
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.
The pullback rally ended abruptly today shattering the short
term technical parameters which is a terribly weak sign and if it does not
bounce back sharply in next 2-3
trading session and move at least above 14695.25(this
figure can change downward if it breaks 14467.75 level) & 14754 levels as of now and sustain on
the closing basis then only it may give relief rally otherwise it will fall further for sure with
intermittent short relief rallies. If it crosses the mentioned points then it
could go up to 14836---14888.80---14950—14998.69-15064---15204---15239,
but please beware that the possible up rally may end abruptly again as it
has ended today. Similarly moving down it can find support at 14467.75---14428---14336.34---14300---14258---14222.80---14024.85---13996.11---13981.75
levels and can bounce back from any of these points but sustained break below 13981.75 on the closing basis can
potentially threaten the uptrend. Please note that the short term technical
setup is shattered again now but the long term setup is still o.k.
In view of the above observation it is suggested to avoid long trade in
general till correction completion sign emerges, however aggressive traders can
try long trade for a possible pullback rally which can happen any time again
looking at today’s massive fall. So they
can buy if it maintains above 14467.75
for some time but not below it but it could be a highly risky trade in light of
today’s movement. Please note that long trade could be successful once it
closes above at least 14695.25 and
sustain on the closing basis. In this
context please also note that pullback rallies are treacherous in nature and
can end abruptly also, which you have witnessed today; therefore be alert and
extremely cautious in the long trade for pullback gains. Since it has slipped into
correction mode again and this time it seems that it could be painful therefore
short trade should 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 still o.k. 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 14467.75 levels for some time with
a stop loss of 14405. It is for aggressive traders and could be a highly risky trade.
2. Sell on the rise near or within the range of 14700—14755
with a stop loss of 14800. It could be a risky trade but worth trying for
intraday correction.
Or
Sell if it moves and sustain below 14405 for some time with a stop
loss of 14475. 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.
