CNX-NIFTY
Closed at 7845.95 on 23-9-15.
Support:--7840/7829/7812/7795/7787/
7761/ 7723 / 7678.50/7667.25/7539.50/7422.
Resistance:-7858/7907.95/7940—7962/7997/8021.60/8055/8065/
8091.80.
As apprehended it almost followed
bank nifty movement today, opened with a down gap at 7737.35 and hit a low of
7723.25 thereafter zoomed up and made a high of 7882.90 and closed at 7845.95.
Today’s move could be considered as just a bounce back of a sharp fall it witnessed
yesterday and this morning and it may not last ,but price movement has to be
respected in any case and trade decision has to
be maneuvered accordingly to
protect gains and cut losses early. Now it is having support from lower band of
its short term moving average range which is between 7910—7827(it changes every
day) for 24-9-2015, from the bottom of 7829, 7812 & 7788 on the line chart.
Going up it will face stiff resistance at 7910/7940—7962/7997. Looking at
today’s volatility day trader can try both long and short trade depending on
the price movement but please keep in
mind yesterday’s trend reversal and be extra alert in long trades because the
long term trend is still down and it will only show some strength if it moves above 8151(it changes every day)
and sustain.
Trading Strategy
1.Day trader can try
long call above 7860 with a stop loss of below 7800 and can add on position if
it moves above 7910 and sustain with a stop loss of below 7860.
2.Short call should
only be initiated if it moves below 7812
and sustain with a stop loss of above 7860, add on short position below 7788
with a stop loss of above 7820.
Remark:-The
trend is down and today’s movement was just a sharp bounce back after yesterdays
and this morning fall. One should not forget yesterdays trend reversal,
furthermore seeing today’s volatility, it is suggested to handle any side trade
with extreme caution and care specially long trade.
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.