CNX NIFTY
CLOSED AT 8191.50 ON 8-5-2015.
Range for the week ended on 8-5-2015 was:-8355.65-----7997.15.
SUPPORT: - 8180 / 8160 / 8147.95 / 8144.75 /
8140 / 8065.45/7961.15 /7841 /
7723 / 7540.10.
RESISTANCE: - 8203.05 / 8236.65 /
8269.15 / 8272.80 / 8282.70 /8355.65
/ 8364.75 / 8445.60 / 8470.50 / 8504.95 / 8612 / 8626.95 / 8669 / 8788.70 / 8794.48 / 8844.80 /
8849.75 / 8913.45 / 8996.60 /
9119.20.
Nifty made temporary short bottom on 7-5-15 at
7997.15 within the expected range of 8050—7960(see my post dt-4-5-2015) and
closed the week at 8191.50. The on- going up move seems to be a pull back rally
of the recent fall and this rally may get exhausted in the range
of 8286 -- 8356 in a day or two, but if it moves above 8356 mark and sustain
then this rally may extend up to 8420---8510 chances of which are not looking that
great at this point of time. I expect the rally to fizzle out in the range of
8270---8320 l or earlier.
The
trend is down for sure therefore it is suggested to avoid positional long call
but the day trader who want to take advantage of the on going relief rally can
try long call above 8191.50 for a target of 8269---8286----8320 but please get
alerted below 8170 and exit long trade
below 8141 for sure. Since it is in short and medium term downtrend and
long term up-trend is severely threatened, therefore I, personally would not
like to go for long call instead, I would look for opportunity to try sell call
on the rise at proper points or below 8170 & below 8140 for sure with a
stop loss of above 8195. Please also note that it is tremendously weak on the
technical chart and the major technical parameters are indicating that it may
break the recent bottom of 7997.15 it made on 7-5-2015 and may seek much lower
levels in coming weeks and months. Therefore long call should be handled with
extreme caution as because technically it is clearly sell on the rise market as
of now.
Kindly
note that profit should also be booked in trade from time to time at the
appropriate points so that you can take advantage of the market swings.
REMARKS:-
Long term up –trend is severely threatened and the on-going up-rally is just a
pull back of the recent fall. Please note that in the weak market these up
rally could end abruptly, therefore it is suggested to avoid long call. However
day trader can try both long and short call depending on the price movement and
as suggested above.
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.
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.
Note: Price stated here is
of spot market.
Contact me for
strategic guidance to enter and exit the trade.
No comments:
Post a Comment
Thank you for sharing your views.