After a brief pause yesterday, the Nosedive for the Nifty is about to resume soon.
Yesterday, we had suggested that the Bears have stamped their authority on the Nifty, and as suggested, the Bears opened the Nifty with a gap down, and any rally was quickly sold off in yesterday's session. Today, given the global cues, the nosedive is likely to continue.
1) The Elder Ray readings : Bull Power reduces from -49 to -125 Bear Power reduces from -185 to -184, indicating that though the Bears have just about maintained their momentum, the Bulls have lost lots of ground in yesterday's trade. This pause, indicates that the down trend may resume sooner rather than later now.
2) The Nifty is trading well below its key EMAs and its key DMAs. The 8EMA is now below the 200DMA, which indicates further weakness on the Nifty.
3) The stochastics are deeply in the oversold zone. However, it must be noted that with the rising momentum on the ADX, the stochastics should be read as a confirmation rather than as a reversal indicator.
4) In the above chart, the volumes have remained stagnant while the Nifty has also remained stagnant, albeit at lower levels. The MACD has now fallen away, and is threatening to fall even more. The ADX is now clearly showing gain in the downtrend momentum. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5010, we will open fresh short positions with a SL of 5040 and a target of 4910. We will add to these short positions only below 4890.
b) Around 4915, we will open fresh long positions with a SL of 4890 and a target of 4980. We will add to these long positions only above 5040.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had suggested that the Bears have stamped their authority on the Nifty, and as suggested, the Bears opened the Nifty with a gap down, and any rally was quickly sold off in yesterday's session. Today, given the global cues, the nosedive is likely to continue.
1) The Elder Ray readings : Bull Power reduces from -49 to -125 Bear Power reduces from -185 to -184, indicating that though the Bears have just about maintained their momentum, the Bulls have lost lots of ground in yesterday's trade. This pause, indicates that the down trend may resume sooner rather than later now.
2) The Nifty is trading well below its key EMAs and its key DMAs. The 8EMA is now below the 200DMA, which indicates further weakness on the Nifty.
3) The stochastics are deeply in the oversold zone. However, it must be noted that with the rising momentum on the ADX, the stochastics should be read as a confirmation rather than as a reversal indicator.
4) In the above chart, the volumes have remained stagnant while the Nifty has also remained stagnant, albeit at lower levels. The MACD has now fallen away, and is threatening to fall even more. The ADX is now clearly showing gain in the downtrend momentum. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5010, we will open fresh short positions with a SL of 5040 and a target of 4910. We will add to these short positions only below 4890.
b) Around 4915, we will open fresh long positions with a SL of 4890 and a target of 4980. We will add to these long positions only above 5040.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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