|
NIFTY AMA
|
RANGE
|
|
|
5 H – AMA
|
7937
|
7960
|
|
5 L - AMA
|
7878
|
7895
|
|
5 AMA
|
7927
|
7950
|
|
13 AMA
|
7770
|
7715
|
|
21 AMA
|
7799
|
7805
|
|
34 AMA
|
7813
|
7790
|
|
89 AMA
|
7915
|
7992
|
|
144
AMA
|
7665
|
7605
|
NIFTY BANDS :
SUPPORT : 7800 - 7820
RESISTANCE : 7920 - 7990
Nifty having moved in tandem with our Buy on Dips strategy has trapped majority of the bears on the street and propelled the market to new highs with some buying and some short covering.
Our Buy at 7620 levels worked perfectly with a stop at 7600 as a low risk opportunity mentioned in the previous post on 12th August. We have pocketed close to 300 points with the initial risk of a mere 20 points. This is the sheer brilliance of the AMA table which keeps churning out such trades on a regular basis. All that is needed is to follow the table with discipline and trade without emotional bias.
As per the AMA table there is resistance in the zone of 7920 - 7990 where the 89AMA is holding fort for the bears. Meaningful support comes in at 7800 - 7820. Even the short term 5AMA's have converged upwards to provide some resistance near the 7950 zone. Therefore, it is advised to book part profits in the upper band of this resistance zone and hold the rest with trailing stops at the support band.
We may expect Nifty to continue to climb upwards on holding this support band of the 34AMA although with slower momentum. As we approach the psychological 8000 mark there is bound to be some sort of profit booking and volatile moves. Thus, booking profits would be the sensible thing to do.
Till then enjoy the longs and the trending ride.
Trade as per levels.
Happy Trading !!!
