On the last day of the month, Nifty remains Bearish. Down move set to accelerate.
As discussed yesterday, "Sell on rise" continued on the Nifty. The Nifty opened with a small positive gap of 4 points and then awaiting the RBI monetary policy announcement, traded in a small range of 25 points between 5845 on the high and 5820 on the lower side. Just before the policy announcement, the Nifty made a high of 5861 which got quickly sold into and the Nifty breached the day's low, the week's low and the month's low to make a new low of 5748 before closing at 5755 with a whopping loss of 77 points. We took a trade on the short side and could book a profit of 25 points by EOD.
1) The Elder Ray readings : Bull Power rises from -48 to -47 Bear Power also rises from -108 to -161 indicating that the Bears are gaining strength and momentum and that the Bulls need to come back fast. For today, the Bulls need to overcome the levels of 5885 to regain their lost grounds whereas the Bears need to push the Nifty below the levels of 5720 to maintain their downwards momentum.
2) The stochastics have just entered the oversold zone and are still pointing downwards.
3) The Nifty has yet again closed below all its key EMAs and also below 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 continues to point downwards with the histogram growing in the negative. The ADX is now suggesting a rise in the bearish momentum with the overall directional momentum also accelerating. The Parabolic SAR continues with its Sell signal with the SL now at 6059.
5) Considering the above, our trading plan for the day is as under.
a) Around 5805 we will open fresh short positions with a SL of 5825 and a target of 5725. We will add to these short positions only below 5690.
b) Around 5710 we will open fresh long positions with a SL of 5690 and a target of 5790. We will add to these long positions only above 5825.
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, "Sell on rise" continued on the Nifty. The Nifty opened with a small positive gap of 4 points and then awaiting the RBI monetary policy announcement, traded in a small range of 25 points between 5845 on the high and 5820 on the lower side. Just before the policy announcement, the Nifty made a high of 5861 which got quickly sold into and the Nifty breached the day's low, the week's low and the month's low to make a new low of 5748 before closing at 5755 with a whopping loss of 77 points. We took a trade on the short side and could book a profit of 25 points by EOD.
1) The Elder Ray readings : Bull Power rises from -48 to -47 Bear Power also rises from -108 to -161 indicating that the Bears are gaining strength and momentum and that the Bulls need to come back fast. For today, the Bulls need to overcome the levels of 5885 to regain their lost grounds whereas the Bears need to push the Nifty below the levels of 5720 to maintain their downwards momentum.
2) The stochastics have just entered the oversold zone and are still pointing downwards.
3) The Nifty has yet again closed below all its key EMAs and also below 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 continues to point downwards with the histogram growing in the negative. The ADX is now suggesting a rise in the bearish momentum with the overall directional momentum also accelerating. The Parabolic SAR continues with its Sell signal with the SL now at 6059.
5) Considering the above, our trading plan for the day is as under.
a) Around 5805 we will open fresh short positions with a SL of 5825 and a target of 5725. We will add to these short positions only below 5690.
b) Around 5710 we will open fresh long positions with a SL of 5690 and a target of 5790. We will add to these long positions only above 5825.
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(b) has triggered. Opened long position at 5705 with a SL of 5690
ReplyDeleteReversed positions at 5690. Booked loss of 15 points
ReplyDelete