On a event day, the Nifty stands bearish with "Sell on rise" mode. New lows possible.
In our yesterday's post, we had suggested that all the attempts at any bounce may get sold into as the "Bearish momentum may continue" on the Nifty. The Nifty opened with a negative gap of 16 points at 5870 then made a quick intraday high of 5886 and then in a choppy but bearish trading session, made a intraday low of 5826 before closing at 5832 with a loss of 55 points. We took one trade on the short side and garnered a profit of 18 points in that trade.
1) The Elder Ray readings : Bull Power reduces from -7 to -48 Bear Power rises from -82 to -108 indicating that the Bulls have now got themselves in deeper trouble. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds whereas the Bears need to breach the levels of 5810 to maintain their downwards momentum.
2) The stochastics are fast approaching the oversold zone, but are not there yet, indicating possibility of a further down move.
3) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have fallen with the fall in the Nifty indicating that the fall may get arrested soon. The MACD is asserting its negative diversion with the histogram also growing in the negative. The ADX is suggesting a rise in strength of the Bears and is also favoring them. The Parabolic SAR continues with its Sell signal with the SL now at 6078.
5) Considering the above, our trading plan for the day is as under.
a) Around 5885 we will open fresh short positions with a SL of 5905 and a target of 5815. We will add to these short positions only below 5770.
b) Around 5790 we will open fresh long positions with a SL of 5770 and a target of 5855. We will add to these long positions only above 5905.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, we had suggested that all the attempts at any bounce may get sold into as the "Bearish momentum may continue" on the Nifty. The Nifty opened with a negative gap of 16 points at 5870 then made a quick intraday high of 5886 and then in a choppy but bearish trading session, made a intraday low of 5826 before closing at 5832 with a loss of 55 points. We took one trade on the short side and garnered a profit of 18 points in that trade.
1) The Elder Ray readings : Bull Power reduces from -7 to -48 Bear Power rises from -82 to -108 indicating that the Bulls have now got themselves in deeper trouble. For today, the Bulls need to overcome the levels of 5920 to regain their lost grounds whereas the Bears need to breach the levels of 5810 to maintain their downwards momentum.
2) The stochastics are fast approaching the oversold zone, but are not there yet, indicating possibility of a further down move.
3) The Nifty has now closed below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes have fallen with the fall in the Nifty indicating that the fall may get arrested soon. The MACD is asserting its negative diversion with the histogram also growing in the negative. The ADX is suggesting a rise in strength of the Bears and is also favoring them. The Parabolic SAR continues with its Sell signal with the SL now at 6078.
5) Considering the above, our trading plan for the day is as under.
a) Around 5885 we will open fresh short positions with a SL of 5905 and a target of 5815. We will add to these short positions only below 5770.
b) Around 5790 we will open fresh long positions with a SL of 5770 and a target of 5855. We will add to these long positions only above 5905.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDeleteany opportunity ogf going long as per trading plan b
Shivam,
ReplyDeleteGood chances that Nifty will retrace to 5820 levels. So a long trade over here for a small profit of 20 25 points is possible.
But one must keep the broader downtrend at the back of mind at all times.
Opened short position at 5775 as per part b of trading plan(a) with a SL of 5800
ReplyDeleteBooked 25 points profit by squaring off short positions at 5750
ReplyDelete