With the Nifty nearing key supports, the next trend may be decided today.
As discussed yesterday, the expiry jitters were felt, as the Nifty whipsawed between 5540 and 5470, which were the levels identified by us yesterday. Today, given the global cues, the Nifty is likely to open with a positive bias.
1) The Elder Ray readings : Bull Power reduces from +197 to +97 Bear Power increases from +59 to +21, indicating that the Bears have been gaining strength for last 3 sessions, however, they are still not in their own zone.
2) The Nifty is now trading below the 8EMA but is above all the rest key EMAs and DMAs indicating that if the Bulls don't takeover soon, the trend might change in the favour of the Bears.
3) The stochastics are now out of the overbought zone and are clearly pointing downwards. One more warning signal for the Bulls.
4) In the above chart, the volumes were quite high in yesterday's minor decline. The Parabolic SAR which was supporting a up-move till yesterday, has suddenly started resisting the same, indicating that a big down-move can be forming shortly. The MACD is showing clear negative divergence and the ADX is also indicating the strengthening of the down move and weakening of the up move.
5) Considering the above, our trading plan for the day is as under
a) Around 5530, we will open fresh short positions with a SL of 5555 and a target of 5445. We will add to these short positions only below 5420.
b) Around 5435, we will open fresh long positions with a SL of 5425 and a target of 5525. We will add to these long positions only above 5560.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the expiry jitters were felt, as the Nifty whipsawed between 5540 and 5470, which were the levels identified by us yesterday. Today, given the global cues, the Nifty is likely to open with a positive bias.
1) The Elder Ray readings : Bull Power reduces from +197 to +97 Bear Power increases from +59 to +21, indicating that the Bears have been gaining strength for last 3 sessions, however, they are still not in their own zone.
2) The Nifty is now trading below the 8EMA but is above all the rest key EMAs and DMAs indicating that if the Bulls don't takeover soon, the trend might change in the favour of the Bears.
3) The stochastics are now out of the overbought zone and are clearly pointing downwards. One more warning signal for the Bulls.
4) In the above chart, the volumes were quite high in yesterday's minor decline. The Parabolic SAR which was supporting a up-move till yesterday, has suddenly started resisting the same, indicating that a big down-move can be forming shortly. The MACD is showing clear negative divergence and the ADX is also indicating the strengthening of the down move and weakening of the up move.
5) Considering the above, our trading plan for the day is as under
a) Around 5530, we will open fresh short positions with a SL of 5555 and a target of 5445. We will add to these short positions only below 5420.
b) Around 5435, we will open fresh long positions with a SL of 5425 and a target of 5525. We will add to these long positions only above 5560.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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