CNX-NIFTY
Further to my post of 22-8-17, since it
did not break its strong support range of 9738---9709---9685 it reasonably bounced
back again intra-day but closed with a meager gain of 11+ point’s on 22.8.17.
But today it gave a robust rise and closed at 9852.50 with a gain of 86.95
points. Although it has made higher bottom at 9740.10 but yet to make higher
top and to make a higher top it has to cross 9947.80 mark and if it makes an
attempt to cross it, on the way it will face stiff resistance from its short
term moving averages in the range of 9858---9871---9881---9935, therefore as of
now it seems that the down move is still on and it is an extended pullback
rally and may exhaust at any of the aforesaid points. However even if it crosses
its recent top of 9947.80 moving up it will face strong resistance at
9965.04/9970/10031&10048 and it could only regain up momentum if it gives sustained
close above 10048.
In view of the above observation it has a
trading range of 9947.80---9740.10 as of now with stiff resistance in between in the
range of 9858---9871---9881---9935. So trying long call before it crosses it recent top of 9947.80 could be a risky proposition. But since it made a higher bottom,
therefore those who wish to try long call can try keeping the aforesaid range
in mind.
I once again reiterate (see my post of
22.8.17) that the technical indicators still indicates that it is most likely
to drift down and break 9448.75level in coming days, however to move otherwise
it has to go beyond 9970 and sustain on the closing basis. The bias is clearly
on the downside as of now, so it would be better to avoid long call in general.
Remark: - It seems that it has certainly topped
out for now, but since it has made a higher bottom now the pullback rally may be
extended but it would be safe to try long call only if it moves above 9970 and
sustain on the closing basis. Therefore instead of taking advantage of the
pullback rally look for an opportunity
to sell on the rise at appropriate points or sell below the critical
points till it gives sign of bottoming out, which looks reasonably far at this
point of time.
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.
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.
Note:
Price stated here is of spot market.
Contact me for
strategic guidance to enter and exit trade.
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.
Note:
Price stated here is of spot market.
Contact me for
strategic guidance to enter and exit trade.
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Thank you for sharing your views.