With bearish technicals and bullish global cues, the Nifty is likely to grind range bound.
As discussed yesterday, we could sense the "Bearish hold" on the Nifty for almost the entire trading session, when, after a flat opening, the Nifty rallied up by 50 points but gave up all those gains in the last 30 minutes of trade. The Nifty never looked like running away, in spite of the smart recovery rally staged on Friday.
1) The Elder Ray readings : Bull Power increases from -74 to -34 Bear Power reduces from -194 to -83, indicating that the Bulls are now withing striking distance of safety. For today, the Bulls need to overcome 4965 to return to safety whereas the Bears need to breach 4875 to maintain their downwards momentum.
2) The Nifty continues to trade below its key EMAs and its key DMAs.
3) The Stochastics are just moving out of the oversold zone and are pointing upwards, indicating a mild rally on the cards.
4) In the above chart, the volumes have depleted in yesterday's small rise on the Nifty, indicating lack of participation in the rise. The MACD is in the negative but is rising, indicating that a up move may be ready to play out. The ADX is suggesting a weakening down trend. The Parabolic SAR has just turned from Sell to Buy.
5) Considering the above, our trading plan for the day is as under.
a) Above 4915, we will open fresh long positions with a SL of 4885 and a target of 4975. We will add to these long positions only above 5010.
b) Around 4980, we will open fresh short positions with a SL of 5010, and a target of 4910 and below that 4875. We will add to these short positions only below 4855.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we could sense the "Bearish hold" on the Nifty for almost the entire trading session, when, after a flat opening, the Nifty rallied up by 50 points but gave up all those gains in the last 30 minutes of trade. The Nifty never looked like running away, in spite of the smart recovery rally staged on Friday.
1) The Elder Ray readings : Bull Power increases from -74 to -34 Bear Power reduces from -194 to -83, indicating that the Bulls are now withing striking distance of safety. For today, the Bulls need to overcome 4965 to return to safety whereas the Bears need to breach 4875 to maintain their downwards momentum.
2) The Nifty continues to trade below its key EMAs and its key DMAs.
3) The Stochastics are just moving out of the oversold zone and are pointing upwards, indicating a mild rally on the cards.
4) In the above chart, the volumes have depleted in yesterday's small rise on the Nifty, indicating lack of participation in the rise. The MACD is in the negative but is rising, indicating that a up move may be ready to play out. The ADX is suggesting a weakening down trend. The Parabolic SAR has just turned from Sell to Buy.
5) Considering the above, our trading plan for the day is as under.
a) Above 4915, we will open fresh long positions with a SL of 4885 and a target of 4975. We will add to these long positions only above 5010.
b) Around 4980, we will open fresh short positions with a SL of 5010, and a target of 4910 and below that 4875. We will add to these short positions only below 4855.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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