Bearish sentiments rule on the Nifty, as Bulls get weaker. Healthy consolidation on.
As discussed yesterday, traces of bearishness remained on the Nifty, as the Nifty opened with a negative gap of 15 points, then breached the previous day's lows at 5664 before closing at 5699 with a loss of 20 points. The Bulls were not able to breach the early morning high of 5712 in the late afternoon attempt, as all rises got sold off swiftly. Our trading plan (b) got triggered and hit the SL as we booked the loss of 20 points.
On the longer term charts, however, this consolidation on the Nifty appears to be a base preparation for the Nifty to take out all time highs. How and when it will unfold, is anybody's guess. We can only be mentally prepared for such a bullish backlash.
1) The Elder Ray readings : Bull Power reduces from -89 to -98 Bear Power also reduces from -149 to -147, indicating that the Bears still are in the driving seat and Bulls need to do a lot before they can breathe easy. For today, the Bulls need to overcome the levels of 5790 to regain their lost grounds, whereas the Bears need to breach the levels of 5640 to maintain their downwards momentum.
2) The Nifty continues to remain below all its key EMAs and also its 50DMA and 100DMA. However, it continues to remain above its 200DMA.
3) The stochastics too continue in the deeps of the oversold zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to grow negative, however, the histogram is suggesting a pause in the fall. The ADX is suggesting a lowering of the bearish momentum, but is still favoring a down move. The Parabolic SAR continues with its sell signal with a SL now pegged at 5866.
5) Considering the above, our trading plan for the day is as under.
a) Around 5740, we will open fresh short positions with a SL of 5755 and a target of 5670. We will add to these short positions only below 5645.
b) Around 5665, we will open fresh long positions with a SL of 5645 and a target of 5725. We will add to these long positions only above 5755.
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, traces of bearishness remained on the Nifty, as the Nifty opened with a negative gap of 15 points, then breached the previous day's lows at 5664 before closing at 5699 with a loss of 20 points. The Bulls were not able to breach the early morning high of 5712 in the late afternoon attempt, as all rises got sold off swiftly. Our trading plan (b) got triggered and hit the SL as we booked the loss of 20 points.
On the longer term charts, however, this consolidation on the Nifty appears to be a base preparation for the Nifty to take out all time highs. How and when it will unfold, is anybody's guess. We can only be mentally prepared for such a bullish backlash.
1) The Elder Ray readings : Bull Power reduces from -89 to -98 Bear Power also reduces from -149 to -147, indicating that the Bears still are in the driving seat and Bulls need to do a lot before they can breathe easy. For today, the Bulls need to overcome the levels of 5790 to regain their lost grounds, whereas the Bears need to breach the levels of 5640 to maintain their downwards momentum.
2) The Nifty continues to remain below all its key EMAs and also its 50DMA and 100DMA. However, it continues to remain above its 200DMA.
3) The stochastics too continue in the deeps of the oversold zone.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues to grow negative, however, the histogram is suggesting a pause in the fall. The ADX is suggesting a lowering of the bearish momentum, but is still favoring a down move. The Parabolic SAR continues with its sell signal with a SL now pegged at 5866.
5) Considering the above, our trading plan for the day is as under.
a) Around 5740, we will open fresh short positions with a SL of 5755 and a target of 5670. We will add to these short positions only below 5645.
b) Around 5665, we will open fresh long positions with a SL of 5645 and a target of 5725. We will add to these long positions only above 5755.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) has triggered and have opened a short position at 5740 with SL of 5755 and target of 5670.
ReplyDeleteHit stop loss at 5755 booked loss of 20 points.
ReplyDeleteOpened long at 5755 with SL of 20 points.
Sorry, typo there in the above comment.
ReplyDeleteBooked loss of 15 points in short position.
Quoting from today's post
ReplyDelete"On the longer term charts, however, this consolidation on the Nifty appears to be a base preparation for the Nifty to take out all time highs. How and when it will unfold, is anybody's guess. We can only be mentally prepared for such a bullish backlash."
Squared off intraday long position at 5780, however booked a profit of 32 points in this trade (5768 NF to 5800 NF) as the premium in futures expanded in our favour.
ReplyDeleteSeems you missed out to write above trade here :)
ReplyDeleteHave already mentioned that long trade, in the same comment when booked loss in short positions as SL hit at the same level of 5755.
DeleteWe try to be very very transparent. We consider this blog as our confidence booster as well as a self correction tool.
ok got it... my mistake. i didnt see that before
ReplyDeleteNett profit for today's trades 17 points (-15 +32)
ReplyDelete