The Nifty is likely to consolidate with volatile movements intraday.
As discussed yesterday, the fall continued on the Nifty, with the Nifty closing the session with a whopping loss of 148 points. Today, some retaliatory bounce is expected with the Bears still calling the shots, as the Nifty may enter consolidation mode.
1) The Elder Ray readings : Bull Power reduces from +83 to +34 Bear Power increases from -33 to -148, indicating that the Bulls are now consistently losing momentum and that they are on the brink of their own safety, they are expected to show some fight back.
2) The Nifty is now trading below all its key EMAs and is above all its key DMAs.
3) The fast stochastics are in the oversold zone but the slow stochastics are still some distance away and pointing downwards, indicating some more room for the fall.
4) In the above chart, the volumes in yesterday's fall have decreased indicating that a bounce back may be on the cards. However, the MACD and the ADX are giving out fresh sell signals.
5) Considering the above, our trading plan for the day is as under.
a) Below 5335, we will open fresh short positions with a SL of 5355 and a target of 5230. We will add to these short positions only below 5200.
b) Around 5210, we will open fresh long positions with a SL of 5190 and a target of 5265. We will add to these long positions only above 5355.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the fall continued on the Nifty, with the Nifty closing the session with a whopping loss of 148 points. Today, some retaliatory bounce is expected with the Bears still calling the shots, as the Nifty may enter consolidation mode.
1) The Elder Ray readings : Bull Power reduces from +83 to +34 Bear Power increases from -33 to -148, indicating that the Bulls are now consistently losing momentum and that they are on the brink of their own safety, they are expected to show some fight back.
2) The Nifty is now trading below all its key EMAs and is above all its key DMAs.
3) The fast stochastics are in the oversold zone but the slow stochastics are still some distance away and pointing downwards, indicating some more room for the fall.
4) In the above chart, the volumes in yesterday's fall have decreased indicating that a bounce back may be on the cards. However, the MACD and the ADX are giving out fresh sell signals.
5) Considering the above, our trading plan for the day is as under.
a) Below 5335, we will open fresh short positions with a SL of 5355 and a target of 5230. We will add to these short positions only below 5200.
b) Around 5210, we will open fresh long positions with a SL of 5190 and a target of 5265. We will add to these long positions only above 5355.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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