As the Nifty continues to trade in a narrow range, new direction to emerge soon.
As discussed yesterday, the expected bounce back came in twice during the trading session. Once at the beginning and then in the afternoon. However, both the bounces were quickly sold off as the Bears seemed to be still in good control over the Nifty. Today, the Nifty is likely to have a soft opening, but during the course of the day, the new direction of flow could emerge.
1) The Elder Ray readings : Bull Power reduces from -5 to -38 Bear Power also reduces from -107 to -103 indicating that the tug of war still continues. 5325 and 5210 are the prime levels that the Bulls and Bears need to breach respectively to gain momentum in their favor.
2) The Nifty continues to languish between its key EMAs and key DMAs. The 200 DMA is drifting down now.
3) The stochastics are in the neutral region and are pointing in opposite directions, confirming the absence of any trend in particular.
4) In the above chart, the volumes are keeping low indicating lack of participation along with lack of direction to the Nifty. The MACD continues to fall indicating bearish undertones to the market. The ADX is signalling a direction less market with a slight but diminishing bias to the Bears. The Parabolic SAR has turned into a sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5270, we will open fresh long positions with a SL of 5255 and a target of 5310. We will add to these long positions above 5350.
b) Below 5270, we will open fresh short positions with a SL of 5290 and a target of 5230. We will add to these short positions below 5200.
c) Around 5310, we will be bearish with a SL of 5325 and a target of 5240.
d) Around 5230, we will be bullish with a SL of 5210 and a target of 5290
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the expected bounce back came in twice during the trading session. Once at the beginning and then in the afternoon. However, both the bounces were quickly sold off as the Bears seemed to be still in good control over the Nifty. Today, the Nifty is likely to have a soft opening, but during the course of the day, the new direction of flow could emerge.
1) The Elder Ray readings : Bull Power reduces from -5 to -38 Bear Power also reduces from -107 to -103 indicating that the tug of war still continues. 5325 and 5210 are the prime levels that the Bulls and Bears need to breach respectively to gain momentum in their favor.
2) The Nifty continues to languish between its key EMAs and key DMAs. The 200 DMA is drifting down now.
3) The stochastics are in the neutral region and are pointing in opposite directions, confirming the absence of any trend in particular.
4) In the above chart, the volumes are keeping low indicating lack of participation along with lack of direction to the Nifty. The MACD continues to fall indicating bearish undertones to the market. The ADX is signalling a direction less market with a slight but diminishing bias to the Bears. The Parabolic SAR has turned into a sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5270, we will open fresh long positions with a SL of 5255 and a target of 5310. We will add to these long positions above 5350.
b) Below 5270, we will open fresh short positions with a SL of 5290 and a target of 5230. We will add to these short positions below 5200.
c) Around 5310, we will be bearish with a SL of 5325 and a target of 5240.
d) Around 5230, we will be bullish with a SL of 5210 and a target of 5290
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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