Bears now in full control of the Nifty. Expect lower levels in coming days.
As discussed on Friday, Bears held fort and pressed down the Nifty below its key support levels and thus ensured that they enhanced their control over the Nifty. The Nifty opened with a minor 10 point gap down at 5929, scurried up to 5954 but failed to breach the previous day's highs, and this failure lead to the Nifty getting sold off, to break the previous day's lows by a whopping 45 points at 5884 before closing at 5903, with a loss of 35 points. Our trading plan (b) triggered late in the day, and we had to book out with a loss of 14 points as the SL got hit as well.
1) The Elder Ray readings : Bull Power reduces from -20 to -32 Bear Power rises from -71 to -102 indicating that the Bears are now strongly in the driver's saddle. For today, the Bulls need to overcome the levels of 5970 to regain their lost grounds whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics are well and truly deep into the oversold zone.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the down move may continue as of now. The MACD is growing on the negative side. The ADX is suggesting a rise in the bearish momentum. The Parabolic SAR continues with its sell signal with a SL now at 6067.
5) Considering the above, our trading plan for the day is as under.
a) Around 5925 we will open fresh short positions with a SL of 5945 and a target of 5885. We will add to these short positions only below 5865.
b) Around 5875 we will open fresh long positions with a SL of 5865 and a target of 5915. We will add to these long positions only above 5945.
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, Bears held fort and pressed down the Nifty below its key support levels and thus ensured that they enhanced their control over the Nifty. The Nifty opened with a minor 10 point gap down at 5929, scurried up to 5954 but failed to breach the previous day's highs, and this failure lead to the Nifty getting sold off, to break the previous day's lows by a whopping 45 points at 5884 before closing at 5903, with a loss of 35 points. Our trading plan (b) triggered late in the day, and we had to book out with a loss of 14 points as the SL got hit as well.
1) The Elder Ray readings : Bull Power reduces from -20 to -32 Bear Power rises from -71 to -102 indicating that the Bears are now strongly in the driver's saddle. For today, the Bulls need to overcome the levels of 5970 to regain their lost grounds whereas the Bears need to breach the Nifty below 5870 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics are well and truly deep into the oversold zone.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the down move may continue as of now. The MACD is growing on the negative side. The ADX is suggesting a rise in the bearish momentum. The Parabolic SAR continues with its sell signal with a SL now at 6067.
5) Considering the above, our trading plan for the day is as under.
a) Around 5925 we will open fresh short positions with a SL of 5945 and a target of 5885. We will add to these short positions only below 5865.
b) Around 5875 we will open fresh long positions with a SL of 5865 and a target of 5915. We will add to these long positions only above 5945.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Watching patiently, as Nifty grinds in between our trading ranges. None of trading plans triggered yet.
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