Bulls stage a minor pullback. Nifty nearing resistances. Bearish assertion expected.
As discussed yesterday, "Bears made the crash canary sing". The Nifty opened with a minor negative gap down of 20 points at 5283. The Nifty then traded bearishly, but in a wider range of about 60 points between 5270 and 5330 for the first 3 hours of trading. The Nifty made a low of 5254 which was a new weekly and monthly low too. However, buying seeped in quietly at lower levels, and the Nifty crossed the day's highs to unfurl a bullish wave which took the Nifty past our identified resistance zone and above 5400 to make a high of 5419 before closing at 5408. We booked a loss of 30 points in one trade taken and are holding a short position initiated at 5385.
Summary : Although the bulls have staged this minor pullback, the technicals remain mostly bearish. Unless the Nifty gives a weekly close above 5500, the outlook will remain bearish for the time being.
1) The Elder Ray readings : Bull Power reduces from -58 to -122 Bear Power also reduces from -294 to -286 indicating that the Bears are still in full control of the Nifty and the Bulls have much work to do as yet. For today, the Bulls need to overcome the levels of 5520 to regain their lost grounds whereas the Bears need to breach the Nifty below 5235 to maintain their downwards momentum.
2) The stochastics are hovering at the top of the oversold zone and are pointing upwards.
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 increased with the rise in the Nifty indicating that the up move may continue. The MACD continues to point downwards, but the histogram is reducing yet remaining in the negative. The ADX is showing reducing momentum for both the Bulls and the Bears, but is preferring the Bears as of now. The Parabolic SAR is continuing with its Sell signal with the SL now shifted down to 5698.
5) Considering the above, our trading plan for the day is as under.
a) Around 5480 we will open fresh short positions with a SL of 5500 and a target of 5330. We will add to these short positions only below 5305.
b) Around 5325 we will open fresh long positions with a SL of 5305 and a target of 5455. We will add to these long positions only above 5500.
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, "Bears made the crash canary sing". The Nifty opened with a minor negative gap down of 20 points at 5283. The Nifty then traded bearishly, but in a wider range of about 60 points between 5270 and 5330 for the first 3 hours of trading. The Nifty made a low of 5254 which was a new weekly and monthly low too. However, buying seeped in quietly at lower levels, and the Nifty crossed the day's highs to unfurl a bullish wave which took the Nifty past our identified resistance zone and above 5400 to make a high of 5419 before closing at 5408. We booked a loss of 30 points in one trade taken and are holding a short position initiated at 5385.
Summary : Although the bulls have staged this minor pullback, the technicals remain mostly bearish. Unless the Nifty gives a weekly close above 5500, the outlook will remain bearish for the time being.
1) The Elder Ray readings : Bull Power reduces from -58 to -122 Bear Power also reduces from -294 to -286 indicating that the Bears are still in full control of the Nifty and the Bulls have much work to do as yet. For today, the Bulls need to overcome the levels of 5520 to regain their lost grounds whereas the Bears need to breach the Nifty below 5235 to maintain their downwards momentum.
2) The stochastics are hovering at the top of the oversold zone and are pointing upwards.
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 increased with the rise in the Nifty indicating that the up move may continue. The MACD continues to point downwards, but the histogram is reducing yet remaining in the negative. The ADX is showing reducing momentum for both the Bulls and the Bears, but is preferring the Bears as of now. The Parabolic SAR is continuing with its Sell signal with the SL now shifted down to 5698.
5) Considering the above, our trading plan for the day is as under.
a) Around 5480 we will open fresh short positions with a SL of 5500 and a target of 5330. We will add to these short positions only below 5305.
b) Around 5325 we will open fresh long positions with a SL of 5305 and a target of 5455. We will add to these long positions only above 5500.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Bought nifty at 5385 SL 5365 Targets 5450/5503/5531
ReplyDeletecan i buy nifty @ current price
ReplyDeleteBooked 50% at 5450 and rest 5439
ReplyDelete