Bears continue to control the Nifty, as it reaches the rising trendline support levels.
As discussed yesterday, the downward drift continued on the Nifty, as the Nifty opened with a 23 point down gap, tried to recover the losses, made a lower high and then got sold off to breach the previous day's lows before closing at 5939 with a loss of 20 points. At the opening mark, our trading plan(b) missed the entry point by a whisker and yet hit its target. Also our trading plan(a) missed the entry point by just a whisker and hit its target. Late in the afternoon, our trading plan(b) again got triggered, and by the EOD, we could book out with a small profit of 5 points.
1) The Elder Ray readings : Bull Power reduces from -18 to -20 Bear Power rises from -56 to -71 indicating that Bears are now getting more of the control on the Nifty. For today, the Bulls need to overcome the levels of 6000 to regain their lost grounds whereas the Bears need to breach the Nifty below 5915 to maintain their downwards momentum
2) The Nifty has closed below its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics remain well and deep into the oversold zone.
4) In the above chart, the volumes have stagnated with the fall in the Nifty indicating that supports are just round the corner. The MACD continues to be in the negative but seems to be pausing. The ADX is suggesting a rise in the bearish momentum. The Parabolic SAR continues to give out its sell signal with a SL now pegged at 6083.
5) Considering the above, our trading plan for the day is as under.
a) Around 5965 we will open fresh short positions with a SL of 5980 and a target of 5925. We will add to these short positions only below 5900.
b) Around 5915 we will open fresh long positions with a SL of 5900 and a target of 5955. We will add to these long positions only above 5980.
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 yesterday, the downward drift continued on the Nifty, as the Nifty opened with a 23 point down gap, tried to recover the losses, made a lower high and then got sold off to breach the previous day's lows before closing at 5939 with a loss of 20 points. At the opening mark, our trading plan(b) missed the entry point by a whisker and yet hit its target. Also our trading plan(a) missed the entry point by just a whisker and hit its target. Late in the afternoon, our trading plan(b) again got triggered, and by the EOD, we could book out with a small profit of 5 points.
1) The Elder Ray readings : Bull Power reduces from -18 to -20 Bear Power rises from -56 to -71 indicating that Bears are now getting more of the control on the Nifty. For today, the Bulls need to overcome the levels of 6000 to regain their lost grounds whereas the Bears need to breach the Nifty below 5915 to maintain their downwards momentum
2) The Nifty has closed below its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics remain well and deep into the oversold zone.
4) In the above chart, the volumes have stagnated with the fall in the Nifty indicating that supports are just round the corner. The MACD continues to be in the negative but seems to be pausing. The ADX is suggesting a rise in the bearish momentum. The Parabolic SAR continues to give out its sell signal with a SL now pegged at 6083.
5) Considering the above, our trading plan for the day is as under.
a) Around 5965 we will open fresh short positions with a SL of 5980 and a target of 5925. We will add to these short positions only below 5900.
b) Around 5915 we will open fresh long positions with a SL of 5900 and a target of 5955. We will add to these long positions only above 5980.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened intraday long position at 5914 as per trading plan (b) with SL of 5900
ReplyDeleteSL Hit. Booked a loss of 14 points.
ReplyDelete