Nifty continues to remain in a trading mode with a downward bias.
As discussed yesterday, the Nifty saw Bears gain momentum with the Nifty opening with a positive gap up of 20 points and then making a top within the first few minutes of trade, when the Bears started to stamp their authority and pushed the Nifty down to about 5243 before closing at 5254 with a loss of a mere 5 points. Our trading plan (a) got triggered and we could book a profit of 30 points each twice during the trading session.
1) The Elder Ray readings : Bull Power rises from -24 to -21 Bear Power reduces from -88 to -73 confirming that the Nifty is in a trading mode before resuming its directional bias. For today, the Bulls need to take the Nifty over 5320 to regain their lost grounds whereas the Bears need to take the Nifty below 5230 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs and also its 50DMA, which is at 5260 currently.
3) The stochastics are in the oversold zone and are pointing horizontally.
4) In the above chart, the Nifty has been range bound with reducing volumes, indicating lack of participation and confirming the downward bias. The MACD is still pointing downwards but the ADX is suggesting some loss of momentum for the Bears. The Parabolic SAR is continuing its sell signal with the SL now at 5396.
5) Considering the above, our trading plan for the day is as under.
a) Around 5225, we will open fresh long positions with a SL of 5205 and a target of 5275. We will add to these long positions only above 5300.
b) Around 5285, we will open fresh short positions with a SL of 5300 and a target of 5240. We will add to these short positions only below 5205.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty saw Bears gain momentum with the Nifty opening with a positive gap up of 20 points and then making a top within the first few minutes of trade, when the Bears started to stamp their authority and pushed the Nifty down to about 5243 before closing at 5254 with a loss of a mere 5 points. Our trading plan (a) got triggered and we could book a profit of 30 points each twice during the trading session.
1) The Elder Ray readings : Bull Power rises from -24 to -21 Bear Power reduces from -88 to -73 confirming that the Nifty is in a trading mode before resuming its directional bias. For today, the Bulls need to take the Nifty over 5320 to regain their lost grounds whereas the Bears need to take the Nifty below 5230 to maintain their downwards momentum.
2) The Nifty has now closed below all its key EMAs and also its 50DMA, which is at 5260 currently.
3) The stochastics are in the oversold zone and are pointing horizontally.
4) In the above chart, the Nifty has been range bound with reducing volumes, indicating lack of participation and confirming the downward bias. The MACD is still pointing downwards but the ADX is suggesting some loss of momentum for the Bears. The Parabolic SAR is continuing its sell signal with the SL now at 5396.
5) Considering the above, our trading plan for the day is as under.
a) Around 5225, we will open fresh long positions with a SL of 5205 and a target of 5275. We will add to these long positions only above 5300.
b) Around 5285, we will open fresh short positions with a SL of 5300 and a target of 5240. We will add to these short positions only below 5205.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.