During the current phase of consolidation, the retest of 4780 seems due today.
As discussed yesterday, it was a case of "Grinding Consolidation" on the Nifty for most of the trading session, when the Nifty traded listlessly within a 30 point range, before plunging more than 90 points in the last hour of the trade. Today, the Bearish down move is likely to resume, but could get arrested around 4780, just for a while.
1) The Elder Ray readings : Bull Power recovers from -34 to +1 Bear Power increases from -83 to -106, indicating that through a late hour sell off, the Bears have been able to maintain their momentum, however, the Bulls have also regained their lost grounds, and a pull back from low levels cannot be ruled out. For today, the Bulls need to overcome 4945 to remain in safe zone, whereas the Bears need to breach the Nifty below 4830 to maintain their down swinging momentum.
2) The Nifty is still trading well below its key EMAs and its key DMAs.
3) The Stochastics which were about to come out of the oversold zone, have returned back to the oversold zone now. This is one indication, where a pullback seems possible.
4) In the above chart, the volumes have increased, but not substantially, in yesterday's decline in the Nifty, indicating that the Nifty could be at the bottom of its trading range. The MACD is in the negative and the histogram continues to rise, but is not supported by the MACD line. This indicates the consolidation phase on the Nifty. The ADX is suggesting a weakening down move currently on the Nifty. The Parabolic SAR is holding out a buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 4890, we will open fresh short positions with a SL of 4925 and a target of 4800. We will add to these short positions only below 4770.
b) Around 4795, we will open fresh long positions with a SL of 4770 and a target of 4890. We will add to these long positions only above 4925.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was a case of "Grinding Consolidation" on the Nifty for most of the trading session, when the Nifty traded listlessly within a 30 point range, before plunging more than 90 points in the last hour of the trade. Today, the Bearish down move is likely to resume, but could get arrested around 4780, just for a while.
1) The Elder Ray readings : Bull Power recovers from -34 to +1 Bear Power increases from -83 to -106, indicating that through a late hour sell off, the Bears have been able to maintain their momentum, however, the Bulls have also regained their lost grounds, and a pull back from low levels cannot be ruled out. For today, the Bulls need to overcome 4945 to remain in safe zone, whereas the Bears need to breach the Nifty below 4830 to maintain their down swinging momentum.
2) The Nifty is still trading well below its key EMAs and its key DMAs.
3) The Stochastics which were about to come out of the oversold zone, have returned back to the oversold zone now. This is one indication, where a pullback seems possible.
4) In the above chart, the volumes have increased, but not substantially, in yesterday's decline in the Nifty, indicating that the Nifty could be at the bottom of its trading range. The MACD is in the negative and the histogram continues to rise, but is not supported by the MACD line. This indicates the consolidation phase on the Nifty. The ADX is suggesting a weakening down move currently on the Nifty. The Parabolic SAR is holding out a buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 4890, we will open fresh short positions with a SL of 4925 and a target of 4800. We will add to these short positions only below 4770.
b) Around 4795, we will open fresh long positions with a SL of 4770 and a target of 4890. We will add to these long positions only above 4925.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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