As the Nifty trades at the lower end of its trading range, volatility may rise today.
As discussed yesterday, the Nifty was clueless on direction for most of the morning session. However, once 5280 and then 5240 were broken, the bears took charge. However, they were not able to close the Nifty beyond the lower boundary of its current trading range. Today, given the global cues, the Nifty is likely to open with a slight negative bias, but given the track record of bears at the lower end, and bulls at the upper end of the trading range, a bounce back from these levels cannot be ruled out.
1) The Elder Ray readings : Bull Power reduces from +58 to +43 Bear Power increases from -33 to -80, indicating that both the Bulls and Bears are safe in their own zones, with the Bears having a edge over the Bulls. For today, the Bulls need to surpass 5255 to retain their territory whereas the Bears need to breach 5175 to retain their momentum.
2) The Nifty is now trading well below its key EMAs and now the 100 and 200 DMAs at 5121 and 5137 respectively can offer some valuable support. Any further bearish trend will start only with a close below 5120.
3) The fast stochastics are in the oversold zone now, with the slow stochastics lagging way behind. This indicates some momentum on part of the Bears.
4) In the above chart, the volumes have remained stagnant during yesterday's fall, raising suspicion on sustaining of this falling move. The MACD is in the negative and is horizontal. The ADX is also suggesting a momentum less market with a bias towards a down move. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5235, we will open fresh short positions with a SL of 5250 and a target of 5150. We will add to these short positions only below 5120.
b) Around 5150, we will open fresh long positions with a SL of 5130 and a target of 5225. We will add to these long positions only above 5250.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty was clueless on direction for most of the morning session. However, once 5280 and then 5240 were broken, the bears took charge. However, they were not able to close the Nifty beyond the lower boundary of its current trading range. Today, given the global cues, the Nifty is likely to open with a slight negative bias, but given the track record of bears at the lower end, and bulls at the upper end of the trading range, a bounce back from these levels cannot be ruled out.
1) The Elder Ray readings : Bull Power reduces from +58 to +43 Bear Power increases from -33 to -80, indicating that both the Bulls and Bears are safe in their own zones, with the Bears having a edge over the Bulls. For today, the Bulls need to surpass 5255 to retain their territory whereas the Bears need to breach 5175 to retain their momentum.
2) The Nifty is now trading well below its key EMAs and now the 100 and 200 DMAs at 5121 and 5137 respectively can offer some valuable support. Any further bearish trend will start only with a close below 5120.
3) The fast stochastics are in the oversold zone now, with the slow stochastics lagging way behind. This indicates some momentum on part of the Bears.
4) In the above chart, the volumes have remained stagnant during yesterday's fall, raising suspicion on sustaining of this falling move. The MACD is in the negative and is horizontal. The ADX is also suggesting a momentum less market with a bias towards a down move. The Parabolic SAR is continuing with its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5235, we will open fresh short positions with a SL of 5250 and a target of 5150. We will add to these short positions only below 5120.
b) Around 5150, we will open fresh long positions with a SL of 5130 and a target of 5225. We will add to these long positions only above 5250.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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