As Bears take a pause and Bulls struggle to buckle up, the Nifty gets range bound.
As discussed yesterday, Bearishness spread out on the Nifty, as in spite of a nice positive up gap opening of 16 points on the Nifty, Bears crushed down any efforts by the Bulls to move it up. The Nifty made a quick high of 5924 and immediately got sold off, to breach the previous day's low and make a low of 5879 for itself, before closing at 5898 with a loss of 6 points. As the Nifty evaded our levels by a whisker, none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from -32 to -49 Bear Power also reduces from -102 to -94 indicating that the Bears have taken a pause whilst the Bulls are really struggling to keep their act up. For today, the Bulls need to overcome the levels of 5965 to regain their lost grounds whereas the Bears need to breach the Nifty below 5865 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA (5960). However it has closed above its 100DMA(5819) and its 200DMA.
3) The stochastics continue to remain well and deep into the oversold zone, confirming the Bearishness that persists on the Nifty.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD however, continues to grow on the negative side. The ADX is suggesting a mild loss of bearish momentum, but still favors the down move. The Parabolic SAR continues to give out its sell signal with the SL now pegged at 6049.
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 5940 and a target of 5875. We will add to these short positions only below 5855.
b) Around 5865 we will open fresh long positions with a SL of 5855 and a target of 5900. We will add to these long positions only above 5940.
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, Bearishness spread out on the Nifty, as in spite of a nice positive up gap opening of 16 points on the Nifty, Bears crushed down any efforts by the Bulls to move it up. The Nifty made a quick high of 5924 and immediately got sold off, to breach the previous day's low and make a low of 5879 for itself, before closing at 5898 with a loss of 6 points. As the Nifty evaded our levels by a whisker, none of our trading plans got triggered.
1) The Elder Ray readings : Bull Power reduces from -32 to -49 Bear Power also reduces from -102 to -94 indicating that the Bears have taken a pause whilst the Bulls are really struggling to keep their act up. For today, the Bulls need to overcome the levels of 5965 to regain their lost grounds whereas the Bears need to breach the Nifty below 5865 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA (5960). However it has closed above its 100DMA(5819) and its 200DMA.
3) The stochastics continue to remain well and deep into the oversold zone, confirming the Bearishness that persists on the Nifty.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD however, continues to grow on the negative side. The ADX is suggesting a mild loss of bearish momentum, but still favors the down move. The Parabolic SAR continues to give out its sell signal with the SL now pegged at 6049.
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 5940 and a target of 5875. We will add to these short positions only below 5855.
b) Around 5865 we will open fresh long positions with a SL of 5855 and a target of 5900. We will add to these long positions only above 5940.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty evades our trading plan(a) by 9 points. 5916.75 high made. Now trading at 5910.
ReplyDeleteNifty touched our levels and trading plan(a) has triggered, but hardly 15 minutes more to go. Avoiding taking any trades for the day.
ReplyDelete