Bears have come back strongly in the past two sessions. Nifty has turned bearish.
As discussed yesterday, we saw Expiry Jitters on the trading bourses. The Nifty opened with a negative gap down of 20 points at 5970, tried to bridge the gap and did succeed, but failed to retain those gains at 5991 and got sold off immediately. The downfall gave pauses around 5960 and again at 5948 and tried a bounce, but again failed. And then came the waterfall slide which took the Nifty below 5900 and made a low of 5896 before closing at 5908. We took two trades and booked a profit of 15 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from +76 to +29 Bear Power rises from -9 to -66 indicating that both the Bulls and the Bears are in their respective safe zones, but the Bulls are sliding down as of now. For today, the Bulls need to overcome the levels of 5990 to maintain their upwards momentum whereas the Bears need to breach the levels of 5885 to maintain their downwards momentum.
2) The stochastics are out of the overbought zone and are pointing downwards.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD is indicating topping out and the histogram though in the positive, is falling. The ADX is showing a favor towards the down move. The Parabolic SAR has turned into a Sell signal with the SL now at 6093.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh short positions with a SL of 5975 and a target of 5860. We will add to these short positions only below 5840.
b) Around 5855 we will open fresh long positions with a SL of 5840 and a target of 5930. We will add to these long positions only above 5975.
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 Expiry Jitters on the trading bourses. The Nifty opened with a negative gap down of 20 points at 5970, tried to bridge the gap and did succeed, but failed to retain those gains at 5991 and got sold off immediately. The downfall gave pauses around 5960 and again at 5948 and tried a bounce, but again failed. And then came the waterfall slide which took the Nifty below 5900 and made a low of 5896 before closing at 5908. We took two trades and booked a profit of 15 points in both trades put together.
1) The Elder Ray readings : Bull Power reduces from +76 to +29 Bear Power rises from -9 to -66 indicating that both the Bulls and the Bears are in their respective safe zones, but the Bulls are sliding down as of now. For today, the Bulls need to overcome the levels of 5990 to maintain their upwards momentum whereas the Bears need to breach the levels of 5885 to maintain their downwards momentum.
2) The stochastics are out of the overbought zone and are pointing downwards.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD is indicating topping out and the histogram though in the positive, is falling. The ADX is showing a favor towards the down move. The Parabolic SAR has turned into a Sell signal with the SL now at 6093.
5) Considering the above, our trading plan for the day is as under.
a) Around 5955 we will open fresh short positions with a SL of 5975 and a target of 5860. We will add to these short positions only below 5840.
b) Around 5855 we will open fresh long positions with a SL of 5840 and a target of 5930. We will add to these long positions only above 5975.
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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