Although the Nifty remains under a bearish spell, key supports are approaching.
As discussed yesterday, we saw choppiness with a downward bias on the Nifty all through the trading session. The Nifty opened with a negative gap down of 30 points at 5638 and then immediately got sold off to breach the 5600 level. It made a new low of 5566 before closing at 5590 with a loss of 78 points. We got two trades in, with a profit of 40 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from -119 to -134 Bear Power rises from -188 to -208 indicating the strong control that the Bears are having on the Nifty. For today, the Bulls need to overcome the levels of 5745 to regain their lost grounds whereas the Bears need to breach the Nifty below 5535 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone and are still pointing downwards.
3) The Nifty continues to close 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 get arrested soon. The MACD continues to point downwards and is deep in the negative with the histogram also growing in the negative. The ADX is suggesting a strong favor to the Bears. The Parabolic SAR continues with its sell signal with the SL now at 5847.
5) Considering the above, our trading plan for the day is as under.
a) Around 5635 we will open fresh short positions with a SL of 5660 and a target of 5550. We will add to these short positions only below 5520.
b) Around 5545 we will open fresh long positions with a SL of 5520 and a target of 5600. We will add to these long positions only above 5660.
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, we saw choppiness with a downward bias on the Nifty all through the trading session. The Nifty opened with a negative gap down of 30 points at 5638 and then immediately got sold off to breach the 5600 level. It made a new low of 5566 before closing at 5590 with a loss of 78 points. We got two trades in, with a profit of 40 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from -119 to -134 Bear Power rises from -188 to -208 indicating the strong control that the Bears are having on the Nifty. For today, the Bulls need to overcome the levels of 5745 to regain their lost grounds whereas the Bears need to breach the Nifty below 5535 to maintain their downwards momentum.
2) The stochastics are well and deep into the oversold zone and are still pointing downwards.
3) The Nifty continues to close 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 get arrested soon. The MACD continues to point downwards and is deep in the negative with the histogram also growing in the negative. The ADX is suggesting a strong favor to the Bears. The Parabolic SAR continues with its sell signal with the SL now at 5847.
5) Considering the above, our trading plan for the day is as under.
a) Around 5635 we will open fresh short positions with a SL of 5660 and a target of 5550. We will add to these short positions only below 5520.
b) Around 5545 we will open fresh long positions with a SL of 5520 and a target of 5600. We will add to these long positions only above 5660.
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) about to be triggered.
ReplyDeleteOpened fresh short position at 5632 with a SL of 5655
ReplyDeleteSL Hit at 5655. Booked loss of 23 points.
ReplyDelete