CNX-NIFTY
Closed at 7981.90 on 18-9-15.
Support:--7961/ 7955-7940-7907/ 7840/
7761/ 7723 / 7678.50/7667.25/7539.50.
Resistance:-8055/ 8065/ 8091.80/ 8195.
It opened with a huge up gap today at
7967.45 and steadily moved up and hit a high of 8055 for the day and then
started slipping in last hour of trade and made a low of 7955.85 before closing
the day at 7981.90.
It is important to mention here that
the gap it created today is still there and if it makes an effort to fill this
gap on 21-9-2015 then it can come down to 7913 level and if it does and fails
to hold this level then it can go down
sharply ,furthermore it dropped 100 points from the days top and closed near
the low of the day this movement is slightly disturbing and pointing that the
on going rally may be over, although apparently it is not showing weakness on
the daily chart as far as price is concerned, it will show potential weakness only
if it breaks 7829 & 7788 levels but waiting till then would be too late for
the long traders to exit their trades and
if they wait, they will surely end up losing. Since I feel that the top of this
on going rally is possibly in the place at 8055 but at least two days market
movement has to watched to get confirmation of this, therefore it is suggested
for those who are still carrying long position to play safe and book profit now
and on the rise too if they get a chance but get alerted below 7940 and exit
trade below 7900 and can re- enter trade if it moves above 8055 and sustain
with a stop loss of below 8020.
Kindly note that it is having its
first technical support at 7940 (it changes every day) from its short term
trend line and then from its short term moving averages which is in the range
of 7920—7788(it changes every day),so for those who still want to initiate fresh long
trade can base their trade decision on the said parameters. It is needless to
mention here that break below 7940 mark will give first sign of crack of the
rising trend and then break below 7788 mark will accelerate the down speed, so
be watchful. I would personally think of long trade only if it sustains above
8055 instead I would try sell call on the rise but below 8055 with a stop loss
of above 8100 or below 7900 and below 7829 & 7788 for sure with proper stop
losses. Please also note that it will
only show strength if it moves above 8161(it changes every day) and sustain.
Remark:-The trend is down
and it seems that the on going pull back rally is either completed or almost on the verge of completion ,therefore it
is suggested to book profit on the long trade now and avoid fresh long trade till
it moves above 8055 and sustain. Short call can be tried as suggested above.
Please 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.
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.
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Thank you for sharing your views.