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Thursday 28 March 2013

Nifty - 28 Mar 2013 - Expiry Jitters

Nifty continues its bearish outlook as on expiry we have weekly & monthly close.

As discussed in our last post, the downwards bias remained on the Nifty. The Nifty opened with a 20 point negative gap down, then traded for the entire day within a narrow band of 40 points, never showing even a glimpse of strength. All attempts to rise were sold off quickly. At the end, the Nifty closed with a minor gain of 7 points. None of our trading plans got triggered, and we were happy sitting on the sidelines.

1) The Elder Ray readings : Bull Power reduces from -40 to -86 Bear Power also reduces from -134 to -130 indicating that despite a green candle, the Nifty is still under the hold of the Bears. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the levels of 5595 to maintain their downwards momentum.

2) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has taken support at its 200DMA(5624).

3) The stochastics continue to remain well and deep into the oversold zone.

 


4) In the above chart, the volumes have depleted with the small rise in the Nifty indicating that the rise may not continue. The MACD continues to fall with the histogram remaining in the negative. The ADX is also suggesting a rise in the downwards momentum and a fall in the up move. The Parabolic SAR continues with its Sell signal with a SL at 5879.

5) We have taken a day off from trading and are enjoying a extended holiday.

Happy Trading !!!     

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