NIFTY – 1st Sepetember[Views presented are my own. Please use them as such only. Research, plan and trade on your risk]
After spending last one month between 9750 to 10000, nifty is now back again near the upper band of this range.
The question is, will NIFTY break this range now to again touch the recent high (or even higher)?
Or it will stay in same range for time being? (Earning money for options writers??)
Or it is done for time, and this is just a break before more fall?
As you can see from the chart above, NIFTY has multiple times taken support on 200 EMA, and tried to touch the upper area of the range.
With few disturbing news recently, like India-China standoff, N.Korea missile test, there was still no breaking down of the range.
This leads to show that market still has strength to go up.
Though, the question is how much up?
Well, that is, always, a unknown number.
It looks like that if someone is bullish currently then stop loss should be 9900 (9960 for more aggressive ones.)
If stop loss is hit, don’t short immediately.
The other contrarion trade would be: Shorting with stoploss above 10000.
In short trade, do close the trade at end of the day.