After a sustained fall of 5 days, the Nifty may enter a consolidation phase now.
As discussed on Friday, the Nifty continued to fall and made a new intermediate low of 5632 before closing at 5651 with a loss of 7 points. Earlier, the Nifty opened flat and traded with a negative bias for the entire trading session. During the last hour of trade, the Bulls attempted a rise, and took the Nifty to 5691 where they lacked a follow through and the Nifty immediately got sold off to breach the opening mark and close at 5651. We did not take any trade on Friday.
1) The Elder Ray readings : Bull Power reduces from -42 to -87 Bear Power also reduces from -152 to -147, indicating that the Nifty may have entered a consolidation phase now with the Bears taking some time off and the Bulls faltering in their course. For today, the Bulls need to overcome the levels of 5755 to regain their lost grounds whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it seems to have taken a support at its 200DMA.
3) The stochastics are now in extremely deep oversold zone and a bounce back on the Nifty may be expected.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested as of now. The MACD continues to weaken with the histogram growing in the negative. The ADX is showing a loss of momentum for the Bears but still favors the down move. The Parabolic SAR continues with its sell signal with the SL now at 5933.
5) Considering the above, our trading plan for the day is as under.
a) Above 5655, we will open fresh long positions with a SL of 5630 and a target of 5705. We will add to these long positions only above 5725.
b) Around 5710, we will open fresh short positions with a SL of 5725 and a target of 5760. We will add to these short positions only below 5630.
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, the Nifty continued to fall and made a new intermediate low of 5632 before closing at 5651 with a loss of 7 points. Earlier, the Nifty opened flat and traded with a negative bias for the entire trading session. During the last hour of trade, the Bulls attempted a rise, and took the Nifty to 5691 where they lacked a follow through and the Nifty immediately got sold off to breach the opening mark and close at 5651. We did not take any trade on Friday.
1) The Elder Ray readings : Bull Power reduces from -42 to -87 Bear Power also reduces from -152 to -147, indicating that the Nifty may have entered a consolidation phase now with the Bears taking some time off and the Bulls faltering in their course. For today, the Bulls need to overcome the levels of 5755 to regain their lost grounds whereas the Bears need to breach the Nifty below 5605 to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it seems to have taken a support at its 200DMA.
3) The stochastics are now in extremely deep oversold zone and a bounce back on the Nifty may be expected.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested as of now. The MACD continues to weaken with the histogram growing in the negative. The ADX is showing a loss of momentum for the Bears but still favors the down move. The Parabolic SAR continues with its sell signal with the SL now at 5933.
5) Considering the above, our trading plan for the day is as under.
a) Above 5655, we will open fresh long positions with a SL of 5630 and a target of 5705. We will add to these long positions only above 5725.
b) Around 5710, we will open fresh short positions with a SL of 5725 and a target of 5760. We will add to these short positions only below 5630.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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