Bulls regain their losses, Nifty faces roadblocks, Big moves may unleash ahead.
As discussed yesterday, Bulls did stage a reversal, in the down trend that we had over the past few trading sessions. Nifty opened with a hefty 32 points positive gap, but faced resistance around 5825 and could not move up in yesterday's move. The Nifty closed at 5819 with a gain of 34 points by the end of day. It made a high of 5829 and a low of 5795 during the trading session. Our trading plan(a) triggered, did not hit the SL, but did not hit the target too. We were able to book out with a gain of 20 points, thanks to our timely analysis that we were against the immediate trend.
1) The Elder Ray readings : Bull Power rises from -16 to +20 Bear Power reduces from -84 to -13 indicating that the Bulls have now regained all their lost grounds, however the Bears too are not 'down and out' yet. For today, the Bulls need to overcome the levels of 5830 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5790 to maintain their downwards momentum.
2) The Nifty has closed 8EMA 13EMA and 200DMA. However, it has closed below its 21EMA 100DMA and 50DMA.
3) The stochastics are in the neutral zone now and are pointing upwards.
4) In the above chart, the volumes have slightly increased with the rise in the Nifty, indicating that the up move may continue. The MACD is still in the negative and is showing a unconfirmed reversal to move upwards. The ADX is now clearly favoring the Bulls. The Parabolic SAR continues with its sell signal with the SL now pegged at 5829.
5) Considering the above, our trading plan for the day is as under.
a) Around 5780 we will open fresh long positions with a SL of 5760 and a target of 5845. We will add to these long positions only above 5875.
b) Around 5860 we will open fresh short positions with a SL of 5875 and a target of 5810. We will add to these short positions only below 5760.
c) As the Nifty is now at a crucial level, with both the Bulls and the Bears being equally strong, we will wait out for our entry levels to arrive strictly. We believe the Nifty is likely to whipsaw around quite a bit, before a clear trend emerges. We would not mind waiting out for that to happen.
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, Bulls did stage a reversal, in the down trend that we had over the past few trading sessions. Nifty opened with a hefty 32 points positive gap, but faced resistance around 5825 and could not move up in yesterday's move. The Nifty closed at 5819 with a gain of 34 points by the end of day. It made a high of 5829 and a low of 5795 during the trading session. Our trading plan(a) triggered, did not hit the SL, but did not hit the target too. We were able to book out with a gain of 20 points, thanks to our timely analysis that we were against the immediate trend.
1) The Elder Ray readings : Bull Power rises from -16 to +20 Bear Power reduces from -84 to -13 indicating that the Bulls have now regained all their lost grounds, however the Bears too are not 'down and out' yet. For today, the Bulls need to overcome the levels of 5830 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5790 to maintain their downwards momentum.
2) The Nifty has closed 8EMA 13EMA and 200DMA. However, it has closed below its 21EMA 100DMA and 50DMA.
3) The stochastics are in the neutral zone now and are pointing upwards.
4) In the above chart, the volumes have slightly increased with the rise in the Nifty, indicating that the up move may continue. The MACD is still in the negative and is showing a unconfirmed reversal to move upwards. The ADX is now clearly favoring the Bulls. The Parabolic SAR continues with its sell signal with the SL now pegged at 5829.
5) Considering the above, our trading plan for the day is as under.
a) Around 5780 we will open fresh long positions with a SL of 5760 and a target of 5845. We will add to these long positions only above 5875.
b) Around 5860 we will open fresh short positions with a SL of 5875 and a target of 5810. We will add to these short positions only below 5760.
c) As the Nifty is now at a crucial level, with both the Bulls and the Bears being equally strong, we will wait out for our entry levels to arrive strictly. We believe the Nifty is likely to whipsaw around quite a bit, before a clear trend emerges. We would not mind waiting out for that to happen.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Reminding ourselves of what we said at 7 am in the morning
ReplyDelete"As the Nifty is now at a crucial level, with both the Bulls and the Bears being equally strong, we will wait out for our entry levels to arrive strictly. We believe the Nifty is likely to whipsaw around quite a bit, before a clear trend emerges. We would not mind waiting out for that to happen."
Trading plan(b) has triggered. But it is too late in the day for taking that trade.
ReplyDeleteIt would be better to sit out and wait for tomorrow.
Saved 15 points from being lost by taking the right decision of not entering the trade.
ReplyDeleteBears scrambling for cover at the end of session quite obvious.