Nifty likely to get choppy as it prepares for expiry. Buy on dips. Sell on rise.
As discussed yesterday, on the Nifty the undertone remained bearish. The Nifty opened with a positive up gap of 17 points at 5607 and traded bearishly for the first two hours and established a low of 5570. Then, the Bulls took over and the Nifty charged up to make a high of 5666. In the last two hours, however, the Nifty again got sold off and closed at 5609 with a gain of 19 points. We took a short trade, and that trade hit the SL and we booked a small loss of 23 points.
1) The Elder Ray readings : Bull Power rises from -134 to -85 Bear Power reduces from -208 to -181 indicating that though the Bulls have shown some resolve to recover, they are still far away from their safe zone, while the Bears are sitting merrily enjoying their profits. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the Nifty below 5540 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone.
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 increased with the Nifty remaining stagnant, indicating that the choppiness may increase. The MACD continues to point downwards in the negative zone. The ADX is suggesting a loss of momentum for the Bears but is still favoring them over the Bulls. The Parabolic SAR continues to give out its sell signal with a SL of 5830.
5) Considering the above, our trading plan for the day is as under.
a) Around 5660 we will open fresh short positions with a SL of 5680 and a target of 5580. We will add to these short positions only below 5540.
b) Around 5560 we will open fresh long positions with a SL of 5540 and a target of 5610. We will add to these long positions only above 5680.
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, on the Nifty the undertone remained bearish. The Nifty opened with a positive up gap of 17 points at 5607 and traded bearishly for the first two hours and established a low of 5570. Then, the Bulls took over and the Nifty charged up to make a high of 5666. In the last two hours, however, the Nifty again got sold off and closed at 5609 with a gain of 19 points. We took a short trade, and that trade hit the SL and we booked a small loss of 23 points.
1) The Elder Ray readings : Bull Power rises from -134 to -85 Bear Power reduces from -208 to -181 indicating that though the Bulls have shown some resolve to recover, they are still far away from their safe zone, while the Bears are sitting merrily enjoying their profits. For today, the Bulls need to overcome the levels of 5725 to regain their lost grounds whereas the Bears need to breach the Nifty below 5540 to maintain their downwards momentum.
2) The stochastics remain in the oversold zone.
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 increased with the Nifty remaining stagnant, indicating that the choppiness may increase. The MACD continues to point downwards in the negative zone. The ADX is suggesting a loss of momentum for the Bears but is still favoring them over the Bulls. The Parabolic SAR continues to give out its sell signal with a SL of 5830.
5) Considering the above, our trading plan for the day is as under.
a) Around 5660 we will open fresh short positions with a SL of 5680 and a target of 5580. We will add to these short positions only below 5540.
b) Around 5560 we will open fresh long positions with a SL of 5540 and a target of 5610. We will add to these long positions only above 5680.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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