Nifty's pause in the current fall only adjusts the averages. Bearishness remains intact.
As discussed yesterday, the Nifty remained in Sell on rise mode. The Nifty opened with a minor positive gap of 5 points at 5682 and closed at 5685 with a minor gain of 8 points in between making a low of 5661 and a high of 5721. This 60 points trading range formed yet another NR7 day and big swings can be expected any time soon. We did not participate in trades yesterday as none of our trading plans got triggered.
Summary : The medium term down trend continues after this small halt. The intraday resistance around 5725 zone still remains, with intraday supports lowering to 5620. Positional shorts should be maintained. Newer positional shorts can still be created.
Also see : Our Positional nifty future and options calls.
1) The Elder Ray readings : Bull Power reduces from -74 to -94 Bear Power also reduces from -187 to -153 indicating that the pause has caused more damage to the Bulls than to the Bears. For today, the Bulls need to overcome the levels of 5795 to regain all of their lost grounds whereas the Bears need to breach the Nifty below 5640 to maintain their downwards momentum.
2) The stochastics continue to remain in the oversold zone now emphasizing the down move.
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 small rise in the Nifty, indicating that the rise may prove to be deceptive. The MACD continues to point downwards, with the histogram remaining in the negative and growing. The ADX is suggesting a fall in the downwards momentum but is also suggesting a fall in the upwards momentum and is favoring the Bears. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 5921.
5) Considering the above, our trading plan for the day is as under.
a) Around 5710 we will open fresh short positions with a SL of 5725 and a target of 5645. We will add to these short positions only below 5615.
b) Around 5630 we will open fresh long positions with a SL of 5615 and a target of 5675. We will add to these long positions only above 5725.
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, the Nifty remained in Sell on rise mode. The Nifty opened with a minor positive gap of 5 points at 5682 and closed at 5685 with a minor gain of 8 points in between making a low of 5661 and a high of 5721. This 60 points trading range formed yet another NR7 day and big swings can be expected any time soon. We did not participate in trades yesterday as none of our trading plans got triggered.
Summary : The medium term down trend continues after this small halt. The intraday resistance around 5725 zone still remains, with intraday supports lowering to 5620. Positional shorts should be maintained. Newer positional shorts can still be created.
Also see : Our Positional nifty future and options calls.
1) The Elder Ray readings : Bull Power reduces from -74 to -94 Bear Power also reduces from -187 to -153 indicating that the pause has caused more damage to the Bulls than to the Bears. For today, the Bulls need to overcome the levels of 5795 to regain all of their lost grounds whereas the Bears need to breach the Nifty below 5640 to maintain their downwards momentum.
2) The stochastics continue to remain in the oversold zone now emphasizing the down move.
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 small rise in the Nifty, indicating that the rise may prove to be deceptive. The MACD continues to point downwards, with the histogram remaining in the negative and growing. The ADX is suggesting a fall in the downwards momentum but is also suggesting a fall in the upwards momentum and is favoring the Bears. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 5921.
5) Considering the above, our trading plan for the day is as under.
a) Around 5710 we will open fresh short positions with a SL of 5725 and a target of 5645. We will add to these short positions only below 5615.
b) Around 5630 we will open fresh long positions with a SL of 5615 and a target of 5675. We will add to these long positions only above 5725.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
We have intraday shorts opened at 5620.
ReplyDeleteRegret our mistake of posting trades in the wrong post.
Look our yesterday's post for our today morning trades taken.
Squared off short positions at 5560 with a profit of 60 points.
ReplyDeleteTotal profit booked for the day 65 points.