The Index has closed near the support zone, this is a level from where the index has multiple times seen a recovery. A candle closing below this level will be a warning of a sell off coming in the Index. We had recommended to sell the index from higher levels, the index has corrected on a continuous basis of 10 

days which has led the RSI into an oversold zone.

RSI trading in an oversold zone suggests to take an exit and wait for the next opportunity. The sellers have been pushing the index down at a great speed and the buyers are not able to regain strength. We are expecting the buyers to come into action at this level as the index is trading near the support as well as this would be a great opportunity to enter. We are expecting the correction till 6860 levels if this index is 

not able to respect this level we might see more selling coming in the future.

We would recommend to buy the index at lower level(7030-7010)  with a SL of 6810

ASX

KUNAL KAMBLE

Jan 22 2022