Nifty gets back into the trading zone as both Bulls & Bears fail to assert.
As discussed on Monday, the Bears needed to follow up on their selling of Friday. However, the Nifty opened with a positive gap of 22 points and throughout the trading session, the Nifty traded in a narrow band of 27 points. None of our trading plans got triggered and we were happy to watch the proceedings from the sidelines.
1) The Elder Ray readings : Bull Power reduces from +17 to +3 Bear Power also reduces from -29 to -24 indicating that both the Bulls and the Bears are now in a position to assert themselves. For today, the Bulls need to overcome the levels of 5870 to maintain their upwards momentum whereas the Bears need to breach the levels of 5840 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and its 13EMA. However, it has closed above its 21EMA (5842) and also above all its key DMAs.
3) The stochastics are now hovering on the oversold zone and are pointing across each other.
4) In the above chart, the volumes have depleted with a minor rise in the Nifty, indicating that the rise may not sustain. The MACD confirms the downtrend with the histogram becoming even more negative. The ADX is suggesting a slowdown in the downwards momentum. The Parabolic SAR continues with its sell signal with a SL of 5939.
5) Considering the above, our trading plan for the day is as under.
a) Around 5825 we will open fresh long positions with a SL of 5805 and a target of 5870. We will add to these long positions only above 5905.
b) Around 5880 we will open fresh short positions with a SL of 5905 and a target of 5840. We will add to these short positions only below 5805.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Monday, the Bears needed to follow up on their selling of Friday. However, the Nifty opened with a positive gap of 22 points and throughout the trading session, the Nifty traded in a narrow band of 27 points. None of our trading plans got triggered and we were happy to watch the proceedings from the sidelines.
1) The Elder Ray readings : Bull Power reduces from +17 to +3 Bear Power also reduces from -29 to -24 indicating that both the Bulls and the Bears are now in a position to assert themselves. For today, the Bulls need to overcome the levels of 5870 to maintain their upwards momentum whereas the Bears need to breach the levels of 5840 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and its 13EMA. However, it has closed above its 21EMA (5842) and also above all its key DMAs.
3) The stochastics are now hovering on the oversold zone and are pointing across each other.
4) In the above chart, the volumes have depleted with a minor rise in the Nifty, indicating that the rise may not sustain. The MACD confirms the downtrend with the histogram becoming even more negative. The ADX is suggesting a slowdown in the downwards momentum. The Parabolic SAR continues with its sell signal with a SL of 5939.
5) Considering the above, our trading plan for the day is as under.
a) Around 5825 we will open fresh long positions with a SL of 5805 and a target of 5870. We will add to these long positions only above 5905.
b) Around 5880 we will open fresh short positions with a SL of 5905 and a target of 5840. We will add to these short positions only below 5805.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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