In spite of yesterday's bounce back, the Nifty may see some selling today onwards.
As discussed yesterday, it was a day of consolidation, with the Nifty trading range bound with a positive bias. We had expected a retaliatory bounce and that came in yesterday. Today, the Nifty is likely to open with a positive gap, but later in the day, some volatile swings and some selling can emerge.
1) The Elder Ray readings : Bull Power reduces from +34 to -19 Bear Power also reduces from -148 to -104 indicating that after a long time the Bears have succeeded in getting the Bulls in the negative, while retaining their own safety. This is an early indication of the selling that may emerge soon.
2) The Nifty is trading between the 13EMA and the 21EMA. All the key EMAs are pointing downwards.
3) The stochastics are now just above the oversold zone, and indicate some more room for the current fall.
4) In the above chart, the Nifty has formed what is known as an "Inside day candle". This is a perfect illustration of a consolidation phase before resumption of the current move. The MACD, the ADX and the Parabolic SAR continue with their sell signals which were generated 2 days ago.
5) Considering the above, our trading plan for the day is as under
a) Below 5425, we will open fresh short positions with a SL of 5455 and a target of 5335. We will add to these short positions only below 5300.
b) Around 5325, we will open fresh long positions with a SL of 5305 and a target of 5375. We will add to these long positions only above 5465.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was a day of consolidation, with the Nifty trading range bound with a positive bias. We had expected a retaliatory bounce and that came in yesterday. Today, the Nifty is likely to open with a positive gap, but later in the day, some volatile swings and some selling can emerge.
1) The Elder Ray readings : Bull Power reduces from +34 to -19 Bear Power also reduces from -148 to -104 indicating that after a long time the Bears have succeeded in getting the Bulls in the negative, while retaining their own safety. This is an early indication of the selling that may emerge soon.
2) The Nifty is trading between the 13EMA and the 21EMA. All the key EMAs are pointing downwards.
3) The stochastics are now just above the oversold zone, and indicate some more room for the current fall.
4) In the above chart, the Nifty has formed what is known as an "Inside day candle". This is a perfect illustration of a consolidation phase before resumption of the current move. The MACD, the ADX and the Parabolic SAR continue with their sell signals which were generated 2 days ago.
5) Considering the above, our trading plan for the day is as under
a) Below 5425, we will open fresh short positions with a SL of 5455 and a target of 5335. We will add to these short positions only below 5300.
b) Around 5325, we will open fresh long positions with a SL of 5305 and a target of 5375. We will add to these long positions only above 5465.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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