CNX-NIFTY
Open-10081.15—High-10081.15---Low—9998.25---Close—10013.65
on 3-8-2017
Major Support: -9970/9944.50/9919.60/9870/9838/9928.20/9792.05/9778.85/9709.30.
Major Resistance: -10043.60/ 10114.85/10131/10162/10369.
Critical Point:-9870 & 9970.
For-3-8-17 the intra-day support and
resistance levels are given here-under:-
Support: -9990--9970/9944/9928.20/9912/9870/9857.25/9838/9792.05/9778.85.
Resistance: - 10043.60/10114.85/10131/10138/10157/10228/10295.
It opened on a flat note and as expected started
to decline immediately and broke its important range of 10043.60—10038.85,
furthermore it also broke the trend line drawn from the bottom of 9448.75 which
indicates potential weakness. However it has bed of support in the range of
9990----9910 and within the range strong support points are at 9970 & 9944.50,
so if it goes down further it may bounce back from anywhere within this range
but sustained break below 9910 on the closing basis can take it down for deeper
correction which may please be noted.
It closed on a weak note and near the low
of the day, most importantly breaking critical range and rising trend line
which is very bad sign, it is below some of its short term moving averages also
now and finally technical indicator is showing negative divergence which
indicates that further decline from here cannot be ruled out, if it does not
bounce back sharply in next 2-3 trading session. It is therefore suggested that
long call should be avoided till the on-going decline is arrested and it starts
moving up again because how this 2 day down move will culminate nobody knows. However
in view of its good support range of 9990---9910 and strong support point at
9970 & 9944.50 long call can be attempted in the range of 9970---9944.50
but not below 9944.50.
Last but not the least in light of two
days weak movement and negative divergence on the chart short call can also be
attempted but it cannot be emphatically said at this moment that it is sell on
the rise market now. However in last two days it has reasonably weakened which
may be noted.
TRADING
STRATAGY FOR-4.8.2017
1. Long call can only be tried if it
maintains above 10043.60 with a stop loss of below 10000 for a target of
10065/10092.
OR
Long call can be tried on decline in the range
of 9970---9944.50 with a stop loss of below 9900.
2. Short call can be tried on the rise but
not above 10043.60 with a stop loss of above 10090 for a target of
10014/9970/9944.50.
OR
Short call can be tried if it move below
10010 and sustain with a stop loss of above 10050. Please note that short call
could be a risky bet but considering last two days weak move, it would be worth
trying.
Remark: - The trend is still up as of now. But it
has been correcting for last 2 days and looking at sharp down move today ,it
seems that decline may continue therefore avoid long call till the fall is
arrested, however aggressive trader can go long as suggested above. But looking
at 2 days fall short call seems a better
bet if price movement favors.
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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