As we approach expiry, Bulls lose momentum. Bears still need to press hard.
Yesterday, we were out of the market due to some personal commitments, and it seems we were lucky on that front. The Bulls clearly lost momentum in yesterday's trade and now it would be interesting to watch out how the Bears use this opportunity to their advantage, or whether the Bulls are successful in yet again defending 5300 before expiry.
1) The Elder Ray readings : Bull Power remains stagnant at +45 Bear Power rises from +17 to -7, indicating that the Bears have now regained their lost grounds, however, the Bulls look still in control. For today, the Bulls need to overcome the levels of 5400 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5340 to maintain their downwards momentum.
2) The Nifty has now closed below its 8EMA and 13EMA, however, it has closed above its 21EMA (@5323 and above all its key DMAs.
3) The stochastics are now out of the overbought zone and are pointing downwards.
4) In the above charts, the volumes have decreased in yesterday's fall on the Nifty, which indicates that the fall was due to lack of buying rather than pressure of selling. The MACD is about to give a negative divergence, indicating that a major down move may be lurking round the corner. The ADX is also suggesting a fall in momentum for the Bulls and a rise in momentum for the Bears, however, the overall momentum is reducing as per the ADX, indicating that the move could turn out to be range bound. The Parabolic SAR has now turned into a Sell signal with a SL of 5449.
5) Considering the above, our trading plan for the day is as under.
a) Around 5380, we will open fresh short positions with a SL of 5395 and a target of 5325. We will add to these short positions only below 5305.
b) Around 5320, we will open fresh long positions with a SL of 5305 and a target of 5360. We will add to these long positions only above 5395.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we were out of the market due to some personal commitments, and it seems we were lucky on that front. The Bulls clearly lost momentum in yesterday's trade and now it would be interesting to watch out how the Bears use this opportunity to their advantage, or whether the Bulls are successful in yet again defending 5300 before expiry.
1) The Elder Ray readings : Bull Power remains stagnant at +45 Bear Power rises from +17 to -7, indicating that the Bears have now regained their lost grounds, however, the Bulls look still in control. For today, the Bulls need to overcome the levels of 5400 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5340 to maintain their downwards momentum.
2) The Nifty has now closed below its 8EMA and 13EMA, however, it has closed above its 21EMA (@5323 and above all its key DMAs.
3) The stochastics are now out of the overbought zone and are pointing downwards.
4) In the above charts, the volumes have decreased in yesterday's fall on the Nifty, which indicates that the fall was due to lack of buying rather than pressure of selling. The MACD is about to give a negative divergence, indicating that a major down move may be lurking round the corner. The ADX is also suggesting a fall in momentum for the Bulls and a rise in momentum for the Bears, however, the overall momentum is reducing as per the ADX, indicating that the move could turn out to be range bound. The Parabolic SAR has now turned into a Sell signal with a SL of 5449.
5) Considering the above, our trading plan for the day is as under.
a) Around 5380, we will open fresh short positions with a SL of 5395 and a target of 5325. We will add to these short positions only below 5305.
b) Around 5320, we will open fresh long positions with a SL of 5305 and a target of 5360. We will add to these long positions only above 5395.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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