CNX-NIFTY
Closed at 7950.90 on 1-10-15.
Support:--7940/ 7840/7759/ 7723 / 7678.50/7667.25/7539.50/7422.
Resistance:-7970/7997/8055/8065/ 8091.80/8195.
It had a gap up opening at 7992.05
and made a high of 8008.25 and then moved down and made a low of 7930.65 and
closed at7950.90. It filled the gap it created today and closed below the high
of previous day bad indication ,but it is still holding on to the short term
technical parameters, therefore on the face of it, its looking ok now but the
under current was weak today. So if it
fails to cross 8040-60 range decisively in next 3-4 days time then the on-
going up move may fizzle out and down journey may begin. Moving up the range of
8040—8065—8092—8135 will pose very stiff resistance therefore this zone is
highly vulnerable for correction. So long traders should be extra careful
around 8040—8065--8092and short traders should only get worried if it moves
above 8135(it changes every day) and sustains.
For 5-10-2015 its short term trend line
would be at 7830, Its short term moving average range is between 7900--7823(it
changes every day), It is closer to the upper band of its broad range of
7660-8060, after making lower top & bottom on the line chart it has decisively crossed the recent top of
7868.50 which is good sign. The short term parameters are ok but not to forget that
the corrective up rallies shows all the promise but can exhaust abruptly also
and it gave some indication of this today. It will show potential weakness
below 7820—7795—7723—7660 so if some one wait for these level to break to exit
the market then it will be too late and all the gains will be wiped out
therefore to some extent one has to anticipate the move ahead of time with
cautiousness to capitalize on it. Looking at today’s trading pattern it is
suggested that one should be very careful and cautious in the long trade at
least. In view of the above technical
observation the following trading strategy is suggested.
TRADING
1.Long call can be tried above 7970
or above 8000 with a stop loss of below 7930 & 7945 respectively. It would
be safe to try it above 8000.
2.Can try buy call near 7900 but not below it with a stop loss of below 7823.It could be a risky trade.
3. Short call can be tried if it
sustains below 7940 with a stop loss of above 8000, it would be an aggressive trade and slightly risky.
4. Short call can be tried below 7860
with a stop loss of above 7900.
5. if it moves up ,it is going to
face huge resistance in the range of 8040-8065 so try sell call here but not
above 8065 with a stop loss of above 8150.
Remark:-The long term trend
is still down. Today’s move failed to keep the yesterday’s momentum on and
showed some weakness but it still hangs in balance .Therefore one can initiate trade position as suggested above. Since it is in
the close vicinity of its highly vulnerable zone, so particularly long traders
are advised to be extra careful.
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.