If the double bottom gets confirmed, the relief rally could get Nifty above 5800.
As discussed yesterday, the Nifty displayed the whipsaw mode. After opening with a 5 point negative gap, the Nifty filled the gap swiftly, and then got sold off immediately to hit just above 5700 and then whipsawed violently in the 50 point range between 5690 and 5740. In the later half though, the Nifty breached 5690 to register a low at 5682 which is just 18 points above the recent lows. The Nifty closed at 5694 with a nett loss of 52 points. Our trading plan(a) got triggered, and as we did not pick up those quick profits of 25 30 points that was on offer during the whipsaw, we finally booked out with a minor loss of 10 points.
1) The Elder Ray readings : Bull Power reduces from +18 to -78 Bear Power rises from -121 to -141 indicating that now the Bulls are out of breath as the Bears take the driving seat on the Nifty. For today however, the Bulls need to overcome the levels of 5805 to regain their lost grounds whereas the Bears need to breach the Nifty below 5660 to retain 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 which is rising by the day.
3) The fast stochastics are already in the oversold zone, while the slow stochastics are following closely.
4) In the above chart, the volumes have decreased while the Nifty makes a double bottom, indicating that the fall may get arrested. The MACD is showing a negative bias with the histogram also falling in the negative. The ADX is showing a strong bias towards the down move. The Parabolic SAR continues with its sell signal with the SL now pegged at 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 5700 we will open fresh long positions with a SL of 5670 and a target of 5765. We will add to these long positions only above 5820.
b) Around 5795 we will open fresh short positions with a SL of 5820 and a target of 5730. We will add to these short positions only below 5670.
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, the Nifty displayed the whipsaw mode. After opening with a 5 point negative gap, the Nifty filled the gap swiftly, and then got sold off immediately to hit just above 5700 and then whipsawed violently in the 50 point range between 5690 and 5740. In the later half though, the Nifty breached 5690 to register a low at 5682 which is just 18 points above the recent lows. The Nifty closed at 5694 with a nett loss of 52 points. Our trading plan(a) got triggered, and as we did not pick up those quick profits of 25 30 points that was on offer during the whipsaw, we finally booked out with a minor loss of 10 points.
1) The Elder Ray readings : Bull Power reduces from +18 to -78 Bear Power rises from -121 to -141 indicating that now the Bulls are out of breath as the Bears take the driving seat on the Nifty. For today however, the Bulls need to overcome the levels of 5805 to regain their lost grounds whereas the Bears need to breach the Nifty below 5660 to retain 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 which is rising by the day.
3) The fast stochastics are already in the oversold zone, while the slow stochastics are following closely.
4) In the above chart, the volumes have decreased while the Nifty makes a double bottom, indicating that the fall may get arrested. The MACD is showing a negative bias with the histogram also falling in the negative. The ADX is showing a strong bias towards the down move. The Parabolic SAR continues with its sell signal with the SL now pegged at 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 5700 we will open fresh long positions with a SL of 5670 and a target of 5765. We will add to these long positions only above 5820.
b) Around 5795 we will open fresh short positions with a SL of 5820 and a target of 5730. We will add to these short positions only below 5670.
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 position at 5680 with a SL of 5660. A variation of trading plan (a)
ReplyDeleteTSL raised to 5700
ReplyDeleteTSL raised to 5720
ReplyDeleteTSL raised to 5730
ReplyDeleteSquared off at 5740 booking a profit of 60 points.
ReplyDeleteWill reenter if sustains above 5750.
Nifty is struggling around 5745 which happens to be the two day high.
ReplyDeleteIf sustains above 5750 for 10 minutes then some serious short covering may set in to take it all the way to 5810.
If that comes about, then trading plan(b) also will need to be tweaked a bit.
DeleteOpened fresh intraday long at 5751 with SL of 5730
ReplyDeleteTSL hit at 5730
ReplyDeleteReentered long at 5700 with SL of 5680 now as trading plan (a) triggers again
ReplyDeleteSquared off long with a loss of 4 points at 5696.
ReplyDelete