Bulls look weak in a eventful week ahead. Sell on rise will be the mantra for trade.
As discussed on Friday, Bears reclaimed their losses, as the Nifty opened with a negative gap of 14 points. The Nifty thereafter, traded within a narrow range of 40 points or so, making a high of 5874 and a low of 5836, before ending the day at 5850 with a minor loss of 2 points. The forthcoming week, being an eventful one, we expect a rise in the volatility on the Nifty. On Friday, during the last volatile hour, we could book a profit of 32 points on two lots traded in the short direction.
1) The Elder Ray readings : Bull Power reduces from -4 to -41 Bear Power also reduces mildly from -81 to -79 indicating that the Bears have rested for now as the Bulls have lost further strength. For today, the Bulls need to overcome the levels of 5905 to regain their lost grounds whereas the Bears need to breach the levels of 5825 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However, it has closed above its 100DMA(5842) and its 200DMA.
3) The fast stochastics are in the oversold zone and are looking up, whereas the slow stochastics are just above the oversold zone and are pointing downwards.
4) In the above chart, the volumes have decreased with the Nifty being stagnant, indicating that the market is in wait and watch mode. The MACD continues to grow on the negative side. The ADX is suggesting a favor towards the down move. The Parabolic SAR maintains its sell signal with a SL at 5968.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh short positions with a SL of 5895 and a target of 5830. We will add to these short positions only below 5805.
b) Around 5815 we will open fresh long positions with a SL of 5805 and a target of 5855. We will add to these long positions only above 5895.
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 reclaimed their losses, as the Nifty opened with a negative gap of 14 points. The Nifty thereafter, traded within a narrow range of 40 points or so, making a high of 5874 and a low of 5836, before ending the day at 5850 with a minor loss of 2 points. The forthcoming week, being an eventful one, we expect a rise in the volatility on the Nifty. On Friday, during the last volatile hour, we could book a profit of 32 points on two lots traded in the short direction.
1) The Elder Ray readings : Bull Power reduces from -4 to -41 Bear Power also reduces mildly from -81 to -79 indicating that the Bears have rested for now as the Bulls have lost further strength. For today, the Bulls need to overcome the levels of 5905 to regain their lost grounds whereas the Bears need to breach the levels of 5825 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA(5961). However, it has closed above its 100DMA(5842) and its 200DMA.
3) The fast stochastics are in the oversold zone and are looking up, whereas the slow stochastics are just above the oversold zone and are pointing downwards.
4) In the above chart, the volumes have decreased with the Nifty being stagnant, indicating that the market is in wait and watch mode. The MACD continues to grow on the negative side. The ADX is suggesting a favor towards the down move. The Parabolic SAR maintains its sell signal with a SL at 5968.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh short positions with a SL of 5895 and a target of 5830. We will add to these short positions only below 5805.
b) Around 5815 we will open fresh long positions with a SL of 5805 and a target of 5855. We will add to these long positions only above 5895.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opens right below our suggested resistance levels of 5875.
ReplyDeleteWill open short positions right at the open with a SL of 5895.
Opened fresh short position at 5871 with SL of 5895 and target of 5830 as per trading plan(a)
ReplyDeleteSquared off short positions at 5848 with a quick profit of 23 points.
ReplyDeleteWill wait for next opportunity.
Re-entered short positions at 5845 with SL of 5855 and target of 5815.
ReplyDeleteHit SL of 5865..lost 20 points.
ReplyDeleteTrading plan (a) triggered again, and opened short positions (2 lots) with a SL of 5895 and a target of 5830 now.
ReplyDeleteSquared off short positions at 5851 booking a profit of 24*2=48 points.
ReplyDeleteToday's total profit = 51 points