CNX-NIFTY
Closed at 7866.05 on 9-5-2016 (Open-7755.25/High-7873.65/Low-7753.55)
Support: - 7849.80/7822.70/7723.85/7714/7678.35/7691.20/7678/7667/7600/7582.25/7551/7540/7539.50/7516.85/7422/7405/7350.30/7295/7252.
Resistance: - 7890.25/7938.45//7946.35/ 7972.45/7979.30/7979.90/8055/8065/8091.80/8116/8160/8180.20/8195.65/8244/8336.
A reasonable up move was expected but this
robust up rally was beyond expectation. It opened with an up gap and it did not
make an attempt to fill the gap and steadily moved up and closed near the high
of the day with a huge gain of 132.60 points, which shows good strength. Please
note that from the recent top of 7992 it took seven days to make a bottom at
7678.35 but it retraced more than 61.8%
of the total fall in just one day,
furthermore it decisively moved above its short term and long term moving
averages except for one long term moving
average which is at 7882(it changes every day) ,therefore today’s up rally seems
to be an impulse move and if it is so than this rally may last for few more
days and in this run it may surpass its recent top of 7992 provided it crosses its last long term moving
average at 7882 and the recent top of
7890.25 on the bar chart and sustain otherwise this move may end here also. Since it is making higher
top and bottom on the line chart therefore long trade can be tried on dip but
not below 7820 or try above 7891. Avoid short call for now.
TRADING OPTION FOR-10-5-2016
1. Long trade can be tried on dip but not
below 7820 with a stop loss of below 7770.
2. It would be safe to try long trade if
it moves and sustain above 7891 with a stop loss of below 7860.
Remark: - In view of today's robust up move long call can be
tried on dip as suggested above but it would be safe to try long call above 7891.Short call should be avoided now. Please
initiate your trade after watching the market for at least 30 minutes.
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.
Traders can explore useful information on CNX nifty here. It is always beneficial to learn from such posts before trading. This helps in managing risk in a better manner. For best stock market tips contact epic research.
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