The Nifty approaches key supports amidst Sell on Rise, the trading mode stays.
As discussed on Friday, we expected a clear trend to emerge by the end of day, however, the Nifty chose to remain in the trading mode, with not breaching our identified support levels of 5935. The Nifty opened with a nice gap of 44 points at 6012, and immediately touched a high of 6018 giving an impression of a breakout coming on. However, it got sold off from there to reach a day's low of 5941 before closing at 5951 with a loss of 17 points. Once our trading plan(b) got triggered after the false breakout, we doubled our usual quantity of trade and could book out with a total gain of 40 points by the end of the trading session.
1) The Elder Ray readings : Bull Power rises from +49 to +64 Bear Power also rises from -9 to -15 indicating that both the Bulls and the Bears are now getting stronger and the trading range may now expand very fast. For today, the Bulls need to overcome the levels of 6020 to maintain their upwards momentum whereas the Bears need to breach the levels of 5935 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA(5968) and its 13EMA(5955) however, it has closed above its 21EMA and all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue for now. The MACD is also showing a small negative divergence and the histogram is now below the zero line. The ADX on the other hand is still favoring the up move and the Parabolic SAR continues with its buy signal with the SL at 5924 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5930 we will open fresh long positions with a SL of 5905 and a target of 5970. We will add to these long positions only above 5995.
b) Around 5980 we will open fresh short positions with a SL of 5995 and a target of 5945. We will add to these short positions only below 5905.
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 Friday, we expected a clear trend to emerge by the end of day, however, the Nifty chose to remain in the trading mode, with not breaching our identified support levels of 5935. The Nifty opened with a nice gap of 44 points at 6012, and immediately touched a high of 6018 giving an impression of a breakout coming on. However, it got sold off from there to reach a day's low of 5941 before closing at 5951 with a loss of 17 points. Once our trading plan(b) got triggered after the false breakout, we doubled our usual quantity of trade and could book out with a total gain of 40 points by the end of the trading session.
1) The Elder Ray readings : Bull Power rises from +49 to +64 Bear Power also rises from -9 to -15 indicating that both the Bulls and the Bears are now getting stronger and the trading range may now expand very fast. For today, the Bulls need to overcome the levels of 6020 to maintain their upwards momentum whereas the Bears need to breach the levels of 5935 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA(5968) and its 13EMA(5955) however, it has closed above its 21EMA and all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue for now. The MACD is also showing a small negative divergence and the histogram is now below the zero line. The ADX on the other hand is still favoring the up move and the Parabolic SAR continues with its buy signal with the SL at 5924 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5930 we will open fresh long positions with a SL of 5905 and a target of 5970. We will add to these long positions only above 5995.
b) Around 5980 we will open fresh short positions with a SL of 5995 and a target of 5945. We will add to these short positions only below 5905.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty came close to triggering our trading plan(b) right in the opening fire. However, the trade has not triggered yet. No positions as of now.
ReplyDeletePart (b) of our trading plan (a) has got triggered above 5995.
ReplyDeleteOpened new long positions at 5995 now with a SL of 5980.
Waiting for targets of 50 points or more now.
Booked out intraday longs at 6025.
ReplyDeleteSatisfactory day with a profit of 30 points.