With the Nifty trading well below its weekly open, it is sell on rise as of now.
As discussed yesterday, we witnessed "Bears on the roll", with the Nifty opening with a minor positive gap, yet not succeeding in taking out previous day's high but succeeding in breaching previous day's lows. Given the global cues, the Nifty is most likely to open weak. However, there are a few supports in the 5080 5100 zone, and depending on how the Nifty tackles this zone, we should foresee the further direction on the markets.
1) The Elder Ray readings: Bull Power reduces from -50 to -58 Bear Power also reduces from -106 to -98 indicating that the Bears have lost some momentum, however, the Bulls are yet out of their safe zone. For today, the Bulls need to overcome the levels of 5195 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5085 to maintain their downwards momentum.
2) The Nifty is still trading below all its key EMAs and also below its 100DMA. The 50DMA and the 200DMA stacked up at 5094 and 5101 should be key levels to be watched out for.
3) The stochastics are well and deeply in the oversold zone.
4) In the above chart, the volumes have increased with the Nifty actually going nowhere, indicating of support at lower levels. The MACD continues to fall. The ADX is also suggesting a rising momentum for the downturn. The Parabolic SAR continues with its Sell signal with the SL now pegged at 5251.
5) Considering the above, our trading plan for the day is as under.
a) Above 5100, we will open fresh long positions with a SL of 5085 and a target of 5150. We will add to these long positions only above 5175.
b) Below 5155, we will open fresh short positions with a SL of 5175 and a target of 5100. We will add to these short positions only below 5085.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we witnessed "Bears on the roll", with the Nifty opening with a minor positive gap, yet not succeeding in taking out previous day's high but succeeding in breaching previous day's lows. Given the global cues, the Nifty is most likely to open weak. However, there are a few supports in the 5080 5100 zone, and depending on how the Nifty tackles this zone, we should foresee the further direction on the markets.
1) The Elder Ray readings: Bull Power reduces from -50 to -58 Bear Power also reduces from -106 to -98 indicating that the Bears have lost some momentum, however, the Bulls are yet out of their safe zone. For today, the Bulls need to overcome the levels of 5195 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5085 to maintain their downwards momentum.
2) The Nifty is still trading below all its key EMAs and also below its 100DMA. The 50DMA and the 200DMA stacked up at 5094 and 5101 should be key levels to be watched out for.
3) The stochastics are well and deeply in the oversold zone.
4) In the above chart, the volumes have increased with the Nifty actually going nowhere, indicating of support at lower levels. The MACD continues to fall. The ADX is also suggesting a rising momentum for the downturn. The Parabolic SAR continues with its Sell signal with the SL now pegged at 5251.
5) Considering the above, our trading plan for the day is as under.
a) Above 5100, we will open fresh long positions with a SL of 5085 and a target of 5150. We will add to these long positions only above 5175.
b) Below 5155, we will open fresh short positions with a SL of 5175 and a target of 5100. We will add to these short positions only below 5085.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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