Bearish outlook aggravates. Positive global cues may provide shorting opportunity.
As discussed yesterday, the downtrend continued, as the Nifty opened with a 51 point negative gap down and traded bearishly amidst volatility through out the trading session. Every rise got sold off, however, the days low of 5683 was protected. We were able to book a small profit of 10 points amidst this volatility.
1) The Elder Ray readings : Bull Power reduces from -123 to -155 Bear Power rises from -178 to -202 indicating that the Bears are still stronger and the Bulls have heavy work to do now. For today, the Bulls need to overcome the levels of 5855 to regain their lost grounds whereas the Bears need to breach the Nifty below 5650 to maintain their downwards momentum.
2) The stochastics are still lying well and deep into the oversold zone.
3) The Nifty continues to close well below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may be arrested now. The MACD has gone negative and the histogram is also in the negative. The ADX continues to suggest a rising Bearish momentum. The Parabolic SAR continues to give out its sell signal with the SL now at 5915.
5) Considering the above, our trading plan for the day is as under.
a) Around 5750 we will open fresh short positions with a SL of 5770 and a target of 5680. We will add to these short positions only below 5630.
b) Around 5645 we will open fresh long positions with a SL of 5630 and a target of 5700. We will add to these long positions only above 5770.
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 downtrend continued, as the Nifty opened with a 51 point negative gap down and traded bearishly amidst volatility through out the trading session. Every rise got sold off, however, the days low of 5683 was protected. We were able to book a small profit of 10 points amidst this volatility.
1) The Elder Ray readings : Bull Power reduces from -123 to -155 Bear Power rises from -178 to -202 indicating that the Bears are still stronger and the Bulls have heavy work to do now. For today, the Bulls need to overcome the levels of 5855 to regain their lost grounds whereas the Bears need to breach the Nifty below 5650 to maintain their downwards momentum.
2) The stochastics are still lying well and deep into the oversold zone.
3) The Nifty continues to close well below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may be arrested now. The MACD has gone negative and the histogram is also in the negative. The ADX continues to suggest a rising Bearish momentum. The Parabolic SAR continues to give out its sell signal with the SL now at 5915.
5) Considering the above, our trading plan for the day is as under.
a) Around 5750 we will open fresh short positions with a SL of 5770 and a target of 5680. We will add to these short positions only below 5630.
b) Around 5645 we will open fresh long positions with a SL of 5630 and a target of 5700. We will add to these long positions only above 5770.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDeletecan we go short at current level
thanks
Opened fresh short position at 5765 with a SL of 5785 as a small deviation from trading plan (a)
ReplyDelete