The first trading week of the year 2021 did tremendously well and beyond expectation. The outgoing week demonstrated a net gain of +1220 index points or 2.74%. The bulls took out two fresh resistance levels with ease, reaching our predicted high of 45500 +/- 300 relatively quickly. However, signs of exhaustion are starting to emerge, and looking forward we may witness a cycle of profit-taking. On the downside, previous resistance will now be acting as support with any major downtrend exposing 43800 +/- 300 once again. While on the upside, we keep our view limited and do not expect any major breakout. There is intermediate resistance at 46100 +/- 100 and critical resistance at 46800 +/- 300. Expectations may be wrong but with signs of obvious exhaustion, one must practice caution to protect profit. The week ahead will be a major decisive moment.
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