Nifty is in a peculiar state of whipsaw, with a widening range difficult to trade.
We have been on a mini vacation. During this period, the Nifty has lost most of its gains made during the rise from 5664 to 5971 and has made a higher low yesterday at 5724 with 5971 itself being a lower top. On the weekly time frame, these two levels are going to play a key role going forward. The Nifty has in face, become difficult to trade as the trading range is widening and the momentum is diminishing. This is also evident by the fact that on the daily timeframe, the Nifty has given two bearish and one bullish engulf in the past two weeks. We have a small long position which is staring at a loss and we added one lot of call option for the current series yesterday, to be squared off by this weekend.
1) The Elder Ray readings : Bull Power rises from -12 to +18 Bear Power also rises from -48 to -121 indicating that the Bears are strong, but the Bulls cannot be counted out yet. For today, the Bulls need to overcome the levels of 5860 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5705 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue as of now. The MACD is just about to show a negative divergence, but has not shown it as yet. The MACD histogram still is in the positive. The ADX is showing clear bias towards the down move. The Parabolic SAR has turned into a sell signal with the SL at 5971. However, it must be noted that the Parabolic SAR method has yielded a loss last time around.
5) Considering the above, our trading plan for the day is as under.
a) Around 5705 we will open fresh long positions with a SL of 5665 and a target of 5800. We will add to these long positions only above 5825.
b) Around 5810 we will open fresh short positions with a SL of 5825 and a target of 5740. We will add to these short positions only below 5665.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
We have been on a mini vacation. During this period, the Nifty has lost most of its gains made during the rise from 5664 to 5971 and has made a higher low yesterday at 5724 with 5971 itself being a lower top. On the weekly time frame, these two levels are going to play a key role going forward. The Nifty has in face, become difficult to trade as the trading range is widening and the momentum is diminishing. This is also evident by the fact that on the daily timeframe, the Nifty has given two bearish and one bullish engulf in the past two weeks. We have a small long position which is staring at a loss and we added one lot of call option for the current series yesterday, to be squared off by this weekend.
1) The Elder Ray readings : Bull Power rises from -12 to +18 Bear Power also rises from -48 to -121 indicating that the Bears are strong, but the Bulls cannot be counted out yet. For today, the Bulls need to overcome the levels of 5860 to maintain their upwards momentum whereas the Bears need to breach the Nifty below the levels of 5705 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue as of now. The MACD is just about to show a negative divergence, but has not shown it as yet. The MACD histogram still is in the positive. The ADX is showing clear bias towards the down move. The Parabolic SAR has turned into a sell signal with the SL at 5971. However, it must be noted that the Parabolic SAR method has yielded a loss last time around.
5) Considering the above, our trading plan for the day is as under.
a) Around 5705 we will open fresh long positions with a SL of 5665 and a target of 5800. We will add to these long positions only above 5825.
b) Around 5810 we will open fresh short positions with a SL of 5825 and a target of 5740. We will add to these short positions only below 5665.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh long at 5708 as per trading plan (a)
ReplyDeleteIt is extreme volatility today.
ReplyDeleteIt is extreme voltility today.
ReplyDeleteSquared off today's long position at 5698 with a loss of 10 points
ReplyDelete