It could be the start of a great fall on the Nifty. Watch out for 5080 levels.
On 30th March 2012, right at the start of the current series, we had suspected that bears are gaining momentum, and had said it in our post "Bears on the prowl". Even yesterday, we had said "Selling continues", and that is what is likely to unfold in days to come. Given the global cues, the Nifty is likely to open with a huge gap down, and stay down.
1) The Elder Ray readings : Bull Power reduces from +4 to -22 Bear Power increases from -56 to -66, indicating that the Bulls have now again lost their territory after a gap of 5 days, and the Bears are now languishing in their safe zone. For today, the Bulls need to cross over 5280 to regain their zone, whereas the Bears need to breach 5200 to maintain their momentum.
2) The Nifty is trading below its key EMAs and below its 50 DMA. The 200 DMA at 5146 and the 100 DMA at 5080 could offer support.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's trade indicating increase in the participation. The MACD is still in the negative, and is threatening to go down. The ADX is suggesting absence of any strong trend, but is biased towards a down move. The Parabolic SAR continues with its buy signal, however, the gap is reducing, and any major gap down can turn this signal into a sell signal.
5) Considering the above, our trading plan is as under.
a) Below 5235, we will open fresh short positions with a SL of 5255 and a target of 5180. We will add to these short positions only below 5140.
b) Above 5240, we will open fresh long positions with a SL of 5210 and a target of 5280. We will add to these long positions only above 5315.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On 30th March 2012, right at the start of the current series, we had suspected that bears are gaining momentum, and had said it in our post "Bears on the prowl". Even yesterday, we had said "Selling continues", and that is what is likely to unfold in days to come. Given the global cues, the Nifty is likely to open with a huge gap down, and stay down.
1) The Elder Ray readings : Bull Power reduces from +4 to -22 Bear Power increases from -56 to -66, indicating that the Bulls have now again lost their territory after a gap of 5 days, and the Bears are now languishing in their safe zone. For today, the Bulls need to cross over 5280 to regain their zone, whereas the Bears need to breach 5200 to maintain their momentum.
2) The Nifty is trading below its key EMAs and below its 50 DMA. The 200 DMA at 5146 and the 100 DMA at 5080 could offer support.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's trade indicating increase in the participation. The MACD is still in the negative, and is threatening to go down. The ADX is suggesting absence of any strong trend, but is biased towards a down move. The Parabolic SAR continues with its buy signal, however, the gap is reducing, and any major gap down can turn this signal into a sell signal.
5) Considering the above, our trading plan is as under.
a) Below 5235, we will open fresh short positions with a SL of 5255 and a target of 5180. We will add to these short positions only below 5140.
b) Above 5240, we will open fresh long positions with a SL of 5210 and a target of 5280. We will add to these long positions only above 5315.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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