As the Nifty approaches key supports, the downfall may get arrested.
On Friday, we had suggested about the Budget day blues, and the Nifty retraced back twice from our suggested levels of 5435 to give a fall of 80 points, before closing near the day lows. Today, the Nifty is likely to open flat and trade both ways within a confined range.
1) The Elder Ray readings : Bull Power reduces from +95 to +85 Bear Power increases from -6 to -56 indicating of the possible tug of war between the Bulls and the Bears with neither ready to give up any ground.
2) The Nifty is trading right between its key EMAs and its key DMAs. The EMAs are pointing downwards now.
3) The stochastics are out of the overbought zone and are pointing downwards, indicating acceleration of the downtrend.
4) In the above chart, the volumes have increased in the last trading session with the Nifty staging a fall, indicating that the fall may continue. The MACD has resumed its fall. The ADX is suggesting a trend less market, with both the Bulls and the Bears equally placed. The Parabolic SAR is holding onto its buy signal. However, this would turn into a sell signal only if the Nifty breaches 5240.
5) Considering the above, our trading plan for the day is as under.
a) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5280. We will add to these short positions only below 5240.
b) Around 5275, we will open fresh long positions with a SL of 5255 and a target of 5340. We will add to these long positions only above 5385.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On Friday, we had suggested about the Budget day blues, and the Nifty retraced back twice from our suggested levels of 5435 to give a fall of 80 points, before closing near the day lows. Today, the Nifty is likely to open flat and trade both ways within a confined range.
1) The Elder Ray readings : Bull Power reduces from +95 to +85 Bear Power increases from -6 to -56 indicating of the possible tug of war between the Bulls and the Bears with neither ready to give up any ground.
2) The Nifty is trading right between its key EMAs and its key DMAs. The EMAs are pointing downwards now.
3) The stochastics are out of the overbought zone and are pointing downwards, indicating acceleration of the downtrend.
4) In the above chart, the volumes have increased in the last trading session with the Nifty staging a fall, indicating that the fall may continue. The MACD has resumed its fall. The ADX is suggesting a trend less market, with both the Bulls and the Bears equally placed. The Parabolic SAR is holding onto its buy signal. However, this would turn into a sell signal only if the Nifty breaches 5240.
5) Considering the above, our trading plan for the day is as under.
a) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5280. We will add to these short positions only below 5240.
b) Around 5275, we will open fresh long positions with a SL of 5255 and a target of 5340. We will add to these long positions only above 5385.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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