Nifty attempts a feeble pullback, stays below key levels keeping Bearishness intact.
As discussed yesterday, Bears were still in control, as the Nifty opened with a mild gap down and then traded with a negative bias in the morning session making a new swing low of 5884, before the Bulls took over and took the Nifty above 5900 and made a intra-day high of 5935 before the Nifty closed at 5924 with a minor gain of 4 points. The Nifty however, traded below key levels keeping the Bearish sentiment intact. Our trading plan(a) triggered and we could book a small profit of 20 points in that trade.
1) The Elder Ray readings : Bull Power reduces from -46 to -78 Bear Power rises from -117 to -129 indicating that even on a positive close, the Bulls are still out of their safe zone and the Bears are marching merrily. For today, the Bulls need to overcome the levels of 6000 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5870 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone.
3) The Nifty has closed below all its key EMAs but has closed just above its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may be short lived. The MACD continues to fall with the histogram continuing to remain in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues to give out its sell signal with the SL now pegged at 6125.
5) Considering the above, our trading plan for the day is as under.
a) Around 5870 we will open fresh long positions with a SL of 5850 and a target of 5920. We will add to these long positions only above 5955.
b) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. We will add to these short positions only below 5850.
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, Bears were still in control, as the Nifty opened with a mild gap down and then traded with a negative bias in the morning session making a new swing low of 5884, before the Bulls took over and took the Nifty above 5900 and made a intra-day high of 5935 before the Nifty closed at 5924 with a minor gain of 4 points. The Nifty however, traded below key levels keeping the Bearish sentiment intact. Our trading plan(a) triggered and we could book a small profit of 20 points in that trade.
1) The Elder Ray readings : Bull Power reduces from -46 to -78 Bear Power rises from -117 to -129 indicating that even on a positive close, the Bulls are still out of their safe zone and the Bears are marching merrily. For today, the Bulls need to overcome the levels of 6000 to regain their lost grounds whereas the Bears need to breach the Nifty below the levels of 5870 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone.
3) The Nifty has closed below all its key EMAs but has closed just above its key DMAs.
4) In the above chart, the volumes have decreased with the rise in the Nifty indicating that the rise may be short lived. The MACD continues to fall with the histogram continuing to remain in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues to give out its sell signal with the SL now pegged at 6125.
5) Considering the above, our trading plan for the day is as under.
a) Around 5870 we will open fresh long positions with a SL of 5850 and a target of 5920. We will add to these long positions only above 5955.
b) Around 5935 we will open fresh short positions with a SL of 5955 and a target of 5890. We will add to these short positions only below 5850.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Trading plan (a) has triggered. Opened fresh long position at 5870 with a SL of 5850 NS.
ReplyDeleteTSL hit at 5900. Booked out with a profit of 30 points.
ReplyDeleteTrading plan (a) hits its target after getting triggered in the morning.
ReplyDeleteHi,
ReplyDeleteOn what basis 5870 was chosen? yesterdays low was 5884..please clarify..
Thanks
Dear Guru,
DeleteThat level was chosen after studying TA, Cam levels and ND Sir's ATR levels. Also depending on global cues, Nifty was expected to open low, but hold long term SMA supports.
Trading plan(b) ready to trigger.
ReplyDeleteOpened short position at 5934 with a SL of 5955
Thanks ITradeForProfit Daily
ReplyDeleteSL triggered @5955 booked loss of 20 points
ReplyDeleteReentered short position at 5945 with SL of 5960
ReplyDeleteSquared off short position at 5915 booking a quick profit of 30 points
ReplyDelete