CNX-NIFTY
As expected it bounced back from its good
support range of 9709—9700—9685(see my post of 14-8-17) on 14-8-17 and given three days
rise in a row which was a pullback rally after a steep fall. However if its
recent low of 9685.55 is construed as a bottom for good then it should have continued
to move up and go beyond 10048 sharply and sustained it on the closing basis
else this pullback rally may end at 9965.04-9995/10031 & 10048 or earlier.
It came pretty close to the first point of 9965.04 on 17.8.17 and made a high
of 9947.80 but closed near the lower end of the day. On 18.8.17 it opened with
a down gap and hit a low of 9783.65 before closing the day with a loss of 66.75
points at 9837.40. Furthermore on 21-8-17 it fell again and closed with a loss
of 83.05 points at 9754.38. Therefore looking at last two days move it can be
assumed that the pullback rally may have ended. But since it has very strong
support in the range of 9738---9709---9685 and it is still holding it,
therefore till it breaks this range it may oscillate in the range of 9738---9870--9970.
Therefore both side trades can be initiated keeping the said range in mind.
It is important to mention here that the technical
indicators indicates that it is most likely to drift downwards and may break
9448.75 level in coming days, however to move otherwise and to regain up momentum again it has to go beyond 9970
and then above 10048 and sustain it on the closing basis. The bias is clearly on the downside as of now,
so it would be better to avoid long call till it gives visible sign of bottoming out.
Remark: - It seems that it has certainly topped
out for now, therefore long call should be avoided and sell on the rise or sell
below the critical points strategy should be adopted till it gives sign of
bottoming out, which looks reasonably away 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.