Despite yesterday's pullback, Nifty looks bearish as yet. More pain ahead for Bulls.
As discussed yesterday, the negative bias continued on the Nifty. The Nifty opened with a minor negative gap at 5806 and then traded bearishly to make a low of 5780. For almost the entire session, the Nifty traded around in a narrow band of 25 points. Late in the day, however, a bounce back was attempted, which got thwarted at 5828 and the Nifty closed at 5822 with a minor gain of 9 points. We did not trade yesterday, as none of our plans got triggered. However, our overall bearish attitude continues.
1) The Elder Ray readings : Bull Power reduces from +1 to -28 Bear Power rises from -58 to -79 indicating that despite the positive close, the Bears have got stronger and the Bulls are out of their safe zone yet again. For today, the Bulls need to overcome the levels of 5850 to regain their lost grounds whereas the Bears need to breach the Nifty below 5770 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing horizontal.
3) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However it is above its 200DMA(5808)
4) In the above chart, the volumes have remained constant with the Nifty remaining stagnant, indicating indecision amongst the traders. The MACD continues to be in the negative with the histogram also remaining in the negative. The ADX is suggesting a rising momentum for the Bears. The Parabolic SAR continues with its Buy signal with the SL now at 5687.
5) Considering the above, our trading plan for the day is as under.
a) Around 5810, we will open fresh short positions with a SL of 5835 and a target of 5735. We will add to these short positions only below 5695.
b) Around 5715 we will open fresh long positions with a SL of 5695 and a target of 5770. We will add to these long positions only above 5835.
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 negative bias continued on the Nifty. The Nifty opened with a minor negative gap at 5806 and then traded bearishly to make a low of 5780. For almost the entire session, the Nifty traded around in a narrow band of 25 points. Late in the day, however, a bounce back was attempted, which got thwarted at 5828 and the Nifty closed at 5822 with a minor gain of 9 points. We did not trade yesterday, as none of our plans got triggered. However, our overall bearish attitude continues.
1) The Elder Ray readings : Bull Power reduces from +1 to -28 Bear Power rises from -58 to -79 indicating that despite the positive close, the Bears have got stronger and the Bulls are out of their safe zone yet again. For today, the Bulls need to overcome the levels of 5850 to regain their lost grounds whereas the Bears need to breach the Nifty below 5770 to maintain their downwards momentum.
2) The stochastics are in the neutral zone and are pointing horizontal.
3) The Nifty has closed below all its key EMAs and also below its 50DMA and 100DMA. However it is above its 200DMA(5808)
4) In the above chart, the volumes have remained constant with the Nifty remaining stagnant, indicating indecision amongst the traders. The MACD continues to be in the negative with the histogram also remaining in the negative. The ADX is suggesting a rising momentum for the Bears. The Parabolic SAR continues with its Buy signal with the SL now at 5687.
5) Considering the above, our trading plan for the day is as under.
a) Around 5810, we will open fresh short positions with a SL of 5835 and a target of 5735. We will add to these short positions only below 5695.
b) Around 5715 we will open fresh long positions with a SL of 5695 and a target of 5770. We will add to these long positions only above 5835.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty is trading in a neutral zone now at 5705 with a negative bias. Will initiate short position at 5735 with a SL of 5760 and a target of 5655.
ReplyDeleteThis is the revised trading plan for today.
Plans need to be revised on major gap days such as today.
Opened fresh short position at 5698 as per trading plan (a) part b.
ReplyDeleteSL for this trade is 5718 and target is 5658.
sir
ReplyDeleteindexis trading in hardly 10pts range for 2hrs
why so
does this tight range means any sharp moves coming?
thanks
yes...currently running correction of the fall going on as bears are soaking up their profits..Bears will push that down for once in the next hour...and then after 2.30 there could be mayhem
DeleteSquared off short position opened in the morning at 5660 booking 38 points profit.
ReplyDelete5658 Target reached
ReplyDelete