Expert View By: Ritesh Chavan
If you observe my stop loss is conservative, so this gives me a mileage to keep a big target. Considering the recent fall in NSE:NIFTY 0.99% just observe the previous fall dated from 19th September to 27th September, just see you will find a lot of similarities in both the situation. The Earlier one looked like a DOUBLE TOP and from there it jumped to making new highs a rally of tremendous 800 plus points. Look at the RSI levels as well, every time it goes below 30 we see a bounce of minimum 500 points.
There is one more thing I want you all to observe, there are 2 Trend Lines , the Maroon one it has been breached twice now, so it gives you a FALSE ALARM, and if the price closes above it again then the market resumes it’s previous bull trend. The Blue Trend Line has fewer touch points but it sure has not been breached till now. So we can also use these 2 pointers to confirm a trend reversal.
So considering all this, I feel it’s more safe to buy and going by the sentiments, it’s kinda negative. Which gives me further mileage because if I’m right and trading against the overall sentiments. I’ll get a swifter rally. Stock specific I’m expecting that it will have tremendous volatility , as you would have observed even today the surge in stock price was more than 2% to 5% in major stocks.
Stop is recent swing long and also below a psychological 10000 level.
Note: Always trade with stop loss (In Trading Discipline is everything)