As I mentioned in the previous article that October month is also going to be heaven for option writers. As you can observe Nifty still struggling in the range between 4700-5000 since 3 weeks. It is the gaps on either side that makes the traders handicap to trade for that day. We have seen so many gap ups and gap downs and this also leads to so much ambiguity in the charts.
It is also evident now that Nifty forms Falling wedge pattern with resistance being 4940. Now 4940 is not only trend-line resistance but also acts as 20Ema. Once this level breaks then it can reach 5000, 5060 without much struggle. There comes the hurdle where Nifty will /may repeat the story of playing in the 300 point range.
For longers it is safe to have stoploss at 4880 and with 10point filter one can even reverse their positions to short side. Always play the trend and please do remember that everyday is not a trading day. There is nothing wrong to wait for good trade and this kind of patience is highly required during gap up and gap down days. Otherwise you may end up with wasting time, energies and your hard-earned money. So do wait for good move during gap opening days. Here is the daily chart of Nifty representing falling wedge pattern.
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Hi Priya I also buy Nifty futures last friday after gap up but futures close 10 points below from my buying level, what you say , Monday Nifty open positive or not ? I want to exit near 4930-4940 level.
Very nicely and clearly worded piece of article Ms.Priya!
I seek your permission to reproduce this article with due ack. to you in our blogsite. this is only for knowledge dissemination purpose.
pl. reply
Regards
bala
ok
Thanks Bala.
Yes you can use this article with a backlink to us. no problem.
Ofcourse this site is for enhancing the technical analysis and trading strategies of stock market.
Hi Azad,
I always give Nifty or Banknifty only spot values unless otherwise specified.
So, if gapdown then sl is 4880 and if gapup then wait for any retracement. one can also add longs above 4940.
At what level you entered you not mentioned yet. so, observe these levels and act accordingly.
Hope everyone enjoyed the nifty levels..moving exactly as per levels…CMP: 5030.
this is what I mentioned in the post..let me paste:
It is also evident now that Nifty forms Falling wedge pattern with resistance being 4940. Now 4940 is not only trend-line resistance but also acts as 20Ema. Once this level breaks then it can reach 5000, 5060 without much struggle.