Nifty ends week stopping short of crucial 5495. Bearishness continues below 5510.
As discussed on Friday, which was a crucial end of week before expiry, the Nifty consolidated and ended just below the day's highs knocking at the doors of a breakout. The Nifty opened with a positive gap up of 20 points at 5429 then traded bearishly for the first hour and made a low of 5479, no where near the previous day's lows, thus emboldening the Bulls and then the Nifty kept on steadily overcoming the day's highs and building on them. The Nifty finally made a high of 5478 before closing at 5472.
Summary : Bulls need a close above 5495 still, and that level has evaded them as yet. If they are not able to capture and hold on to it decisively, the fall can be fast and furious.
1) The Elder Ray readings : Bull Power rises from -122 to -53 Bear Power reduces from -286 to -153 indicating that the Bears are still in full control of the Nifty and that the Bulls have their work cut out as yet. For today, the Bulls need to overcome the levels of 5525 to regain their lost grounds whereas the Bears need to breach the Nifty below 5370 to maintain their downwards momentum.
2) The stochastics are out 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 decreased with the rise in the Nifty indicating that the rise may stall shortly. The MACD continues to remain in the negative, but this time again it is attempting a reversal. The histogram is too rising but is still in the negative. The ADX is suggesting a convergence, indicating equilibrium in the Nifty. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 5663.
5) Considering the above, our trading plan for the day is as under.
a) Around 5510, we will open fresh short positions with a SL of 5530 and a target of 5415. We will add to these short positions only below 5370.
b) Around 5390, we will open fresh long positions with a SL of 5370 and a target of 5460. We will add to these long positions only above 5530.
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 on Friday, which was a crucial end of week before expiry, the Nifty consolidated and ended just below the day's highs knocking at the doors of a breakout. The Nifty opened with a positive gap up of 20 points at 5429 then traded bearishly for the first hour and made a low of 5479, no where near the previous day's lows, thus emboldening the Bulls and then the Nifty kept on steadily overcoming the day's highs and building on them. The Nifty finally made a high of 5478 before closing at 5472.
Summary : Bulls need a close above 5495 still, and that level has evaded them as yet. If they are not able to capture and hold on to it decisively, the fall can be fast and furious.
1) The Elder Ray readings : Bull Power rises from -122 to -53 Bear Power reduces from -286 to -153 indicating that the Bears are still in full control of the Nifty and that the Bulls have their work cut out as yet. For today, the Bulls need to overcome the levels of 5525 to regain their lost grounds whereas the Bears need to breach the Nifty below 5370 to maintain their downwards momentum.
2) The stochastics are out 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 decreased with the rise in the Nifty indicating that the rise may stall shortly. The MACD continues to remain in the negative, but this time again it is attempting a reversal. The histogram is too rising but is still in the negative. The ADX is suggesting a convergence, indicating equilibrium in the Nifty. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 5663.
5) Considering the above, our trading plan for the day is as under.
a) Around 5510, we will open fresh short positions with a SL of 5530 and a target of 5415. We will add to these short positions only below 5370.
b) Around 5390, we will open fresh long positions with a SL of 5370 and a target of 5460. We will add to these long positions only above 5530.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Opened fresh short position as per trading plan(a) at 5512 with a SL of 5532.
ReplyDeleteBooked out intraday shorts at 5470 near EOD.
ReplyDeleteProfit booked 42 points.