Nifty likely to take support and stage a bounce back upto 5250, maybe higher.
As discussed yesterday in our post "Rangebound volatility to unfold", we saw the Nifty open with a minor gap down, then try to claw back to near the day's highs twice, before selling off and settling with a closing loss of 30 points. The Bulls tried hard, but were not successful in taking out the day's high, and hence bolstered the Bears to break the day's lows. However, the Bears were not able to breach 5190, which is the level from where the recent rally started. This gives credence for our belief, that the Nifty may try to stage a bounce-back.
1) The Elder Ray readings : Bull Power reduces from +17 to +4 Bear Power rises from -33 to -52, indicating that the Bears are getting stronger, however, they have not been able to pull the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5250 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5185 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs, however, it has closed above all its key DMAs, making chances of a bounce back more likely.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have depleted in yesterday's fall on the Nifty, making the down move unsustainable. The MACD has given a negative indication and the histogram has also turned negative and is falling. The ADX is also suggesting a bias towards the Bears, but the momentum is falling fast. The Parabolic SAR continues with its sell signal with a SL at 5340.
5) Considering the above, our trading plan for the day is as under.
a) Above 5215, we will open fresh long positions with a SL of 5195 and a target of 5265. We will add to these long positions only above 5285.
b) Below 5210, we will open fresh short positions with a SL of 5235 and a target of 5145. We will add to these short positions only below 5130.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday in our post "Rangebound volatility to unfold", we saw the Nifty open with a minor gap down, then try to claw back to near the day's highs twice, before selling off and settling with a closing loss of 30 points. The Bulls tried hard, but were not successful in taking out the day's high, and hence bolstered the Bears to break the day's lows. However, the Bears were not able to breach 5190, which is the level from where the recent rally started. This gives credence for our belief, that the Nifty may try to stage a bounce-back.
1) The Elder Ray readings : Bull Power reduces from +17 to +4 Bear Power rises from -33 to -52, indicating that the Bears are getting stronger, however, they have not been able to pull the Bulls out of their safe zone. For today, the Bulls need to overcome the levels of 5250 on the Nifty to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5185 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs, however, it has closed above all its key DMAs, making chances of a bounce back more likely.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have depleted in yesterday's fall on the Nifty, making the down move unsustainable. The MACD has given a negative indication and the histogram has also turned negative and is falling. The ADX is also suggesting a bias towards the Bears, but the momentum is falling fast. The Parabolic SAR continues with its sell signal with a SL at 5340.
5) Considering the above, our trading plan for the day is as under.
a) Above 5215, we will open fresh long positions with a SL of 5195 and a target of 5265. We will add to these long positions only above 5285.
b) Below 5210, we will open fresh short positions with a SL of 5235 and a target of 5145. We will add to these short positions only below 5130.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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