After 5 consecutive down sessions, a bounce back is likely anytime soon now.
As discussed yesterday, it continued to be "Sell on rise" on the Nifty throughout the session, after the Nifty tried to rally towards previous day's highs. Later in the day, there was confusion all around with the NSE F&O servers giving up and no trades passing through. The reopening of trades added to the confusion, with rates becoming ever so unpredictable. Today, the Nifty is likely to open with a gap down, however, the weekly supports near 4800 may come into play and the Nifty could stage a bounce back from there.
1) The Elder Ray readings : Bull Power increases from -113 to -106 Bear Power also increases from -183 to -189, indicating that the Bears are still driving the Nifty. For today, the Bulls need to overcome 5050 to regain their lost grounds whereas the Bears need to breach below 4860 to maintain their downward momentum.
2) The Nifty is still trading well below its key EMAs and its key DMAs.
3) The stochastics continue to get well and truly deep into the oversold zone.
4) In the above chart, the volumes are stagnating with every fall on the Nifty, indicating exhaustion of the Bears. The MACD is still falling away, the ADX is now indicating a strong trend which is downwards in direction. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 4910, we will open fresh short positions with a SL of 4930 and a target of 4810. We will add to these short positions only below 4780.
b) Around 4810, we will open fresh long positions with a SL of 4785 and a target of 4910. We will add to these long positions only above 4935.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it continued to be "Sell on rise" on the Nifty throughout the session, after the Nifty tried to rally towards previous day's highs. Later in the day, there was confusion all around with the NSE F&O servers giving up and no trades passing through. The reopening of trades added to the confusion, with rates becoming ever so unpredictable. Today, the Nifty is likely to open with a gap down, however, the weekly supports near 4800 may come into play and the Nifty could stage a bounce back from there.
1) The Elder Ray readings : Bull Power increases from -113 to -106 Bear Power also increases from -183 to -189, indicating that the Bears are still driving the Nifty. For today, the Bulls need to overcome 5050 to regain their lost grounds whereas the Bears need to breach below 4860 to maintain their downward momentum.
2) The Nifty is still trading well below its key EMAs and its key DMAs.
3) The stochastics continue to get well and truly deep into the oversold zone.
4) In the above chart, the volumes are stagnating with every fall on the Nifty, indicating exhaustion of the Bears. The MACD is still falling away, the ADX is now indicating a strong trend which is downwards in direction. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 4910, we will open fresh short positions with a SL of 4930 and a target of 4810. We will add to these short positions only below 4780.
b) Around 4810, we will open fresh long positions with a SL of 4785 and a target of 4910. We will add to these long positions only above 4935.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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