Nifty in a short term consolidation mode as Bears take a breather. Sell on rise still on.
As discussed yesterday, the Bearish consolidation on the Nifty continued. The Nifty opened with a positive gap of 41 points at 5607 and then in the first couple of hours of trading filled the gap making a day low of 5557 from where some buying came in and the Nifty crossed the day's high to make a new day high of 5644 (just above our sell levels indicated) before getting sold off and closing at 5612 with a gain of 47 points. We took a trade on the short side and could book a profit of 15 points in that trade.
Summary : Nifty is in a consolidation mode with the trading range expanding. On such occasions, the big rewarding trades will come after a patient wait.
1) The Elder Ray readings : Bull Power rises from -137 to -56 Bear Power reduces from -204 to -143 indicating that the Bears have let lose their control and that the Bulls are clawing back. For today, the Bulls need to overcome the levels of 5685 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.
2) The stochastics are still in the oversold zone but are attempting to look up.
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 remained high with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point downwards, with the histogram remaining in the negative but reducing. The ADX is also suggesting a rise in the upwards momentum and a fall in the downwards momentum. The Parabolic SAR continues to give out its sell call with the SL now shifted down to 5721.
5) Considering the above, our trading plan for the day is as under.
a) Around 5670 we will open fresh short positions with a SL of 5690 and a target of 5560. We will add to these short positions only below 5535.
b) Around 5550 we will open fresh long positions with a SL of 5535 and a target of 5630. We will add to these long positions only above 5690.
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 Bearish consolidation on the Nifty continued. The Nifty opened with a positive gap of 41 points at 5607 and then in the first couple of hours of trading filled the gap making a day low of 5557 from where some buying came in and the Nifty crossed the day's high to make a new day high of 5644 (just above our sell levels indicated) before getting sold off and closing at 5612 with a gain of 47 points. We took a trade on the short side and could book a profit of 15 points in that trade.
Summary : Nifty is in a consolidation mode with the trading range expanding. On such occasions, the big rewarding trades will come after a patient wait.
1) The Elder Ray readings : Bull Power rises from -137 to -56 Bear Power reduces from -204 to -143 indicating that the Bears have let lose their control and that the Bulls are clawing back. For today, the Bulls need to overcome the levels of 5685 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.
2) The stochastics are still in the oversold zone but are attempting to look up.
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 remained high with the rise in the Nifty indicating that the rise may continue as of now. The MACD continues to point downwards, with the histogram remaining in the negative but reducing. The ADX is also suggesting a rise in the upwards momentum and a fall in the downwards momentum. The Parabolic SAR continues to give out its sell call with the SL now shifted down to 5721.
5) Considering the above, our trading plan for the day is as under.
a) Around 5670 we will open fresh short positions with a SL of 5690 and a target of 5560. We will add to these short positions only below 5535.
b) Around 5550 we will open fresh long positions with a SL of 5535 and a target of 5630. We will add to these long positions only above 5690.
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 (a) got triggered.
ReplyDeleteOpened fresh short positions at 5672 with a SL of 5692
sir
ReplyDeletenifty is holding at current levels
plz advise as should we carry short positions???
Shivam,
ReplyDeleteNifty is holding, but not making newer highs since last hour. Also note our SL not hit yet. Keep holding shorts till EOD and then decide.
SL hit at 5692 booked loss of 20 points
ReplyDelete