With the Nifty entering consolidation mode, the bias is still Bearish.
As discussed yesterday, it was a day to "retest the recent lows", and the Nifty did go to near about 4800, and remained range bound within a 50 point trading range during the entire trading session. Today, it could be yet another grinding day, when the Nifty consolidates within a confined trading range.
1) The Elder Ray readings : Bull Power reduces from +1 to -85 Bear Power rises from -106 to -135, indicating that the Bulls could not retain their safety, and that the Bears are now really driving the Nifty. For today, the Bulls need to overcome 4925 to regain their safety, whereas the Bears need to breach 4795 to maintain their downwards momentum.
2) The Nifty is still trading well below its key EMAs and its key DMAs,
3) The stochastics have just re-entered the oversold zone, reconfirming the downward direction of the current trend.
4) In the above chart, the volumes have started depleting, indicating lack of participation from the traders. The MACD is in the negative and is refusing to rise, indicating lack of any upwards momentum as yet. The ADX is now indicating a strengthening of the downwards momentum. The Parabolic SAR still holds a Buy signal.
5) Considering the above, our trading plan for the day, is as under.
a) Above 4830, we will open fresh long positions with a SL of 4800 and a target of 4865. We will add to these long positions only above 4915.
b) Around 4870 and again below 4830, we will open fresh short positions with a 25 point SL and a target of 4790. We will add to these short positions only below 4760.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it was a day to "retest the recent lows", and the Nifty did go to near about 4800, and remained range bound within a 50 point trading range during the entire trading session. Today, it could be yet another grinding day, when the Nifty consolidates within a confined trading range.
1) The Elder Ray readings : Bull Power reduces from +1 to -85 Bear Power rises from -106 to -135, indicating that the Bulls could not retain their safety, and that the Bears are now really driving the Nifty. For today, the Bulls need to overcome 4925 to regain their safety, whereas the Bears need to breach 4795 to maintain their downwards momentum.
2) The Nifty is still trading well below its key EMAs and its key DMAs,
3) The stochastics have just re-entered the oversold zone, reconfirming the downward direction of the current trend.
4) In the above chart, the volumes have started depleting, indicating lack of participation from the traders. The MACD is in the negative and is refusing to rise, indicating lack of any upwards momentum as yet. The ADX is now indicating a strengthening of the downwards momentum. The Parabolic SAR still holds a Buy signal.
5) Considering the above, our trading plan for the day, is as under.
a) Above 4830, we will open fresh long positions with a SL of 4800 and a target of 4865. We will add to these long positions only above 4915.
b) Around 4870 and again below 4830, we will open fresh short positions with a 25 point SL and a target of 4790. We will add to these short positions only below 4760.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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