Bulls recover lost grounds, but can they hold on? Sell on rise continues as of now.
As discussed yesterday, the Nifty did knock at the doors of a breakout. However, it managed to do just that and retreated back. The Nifty opened at 5499 with a nice positive gap of 28 points and traded within a range of 5530 and 5470 for most of the trading session. However, all attempts at a breakout were successfully blocked. The Nifty made a low of 5454 before closing at 5477 with a small gain of 5 points. We took a trade on the short side and booked a profit of 42 points by EOD.
Summary : The corrective up move on the Nifty seems to have been completed just within the cluster of the falling EMAs and the bearish setup can assert itself unless the Bulls take charge of the Nifty. Nifty has found it difficult to sustain above 5500, which indicates its inherent weakness.
1) The Elder Ray readings : Bull Power rises from -52 to +6 Bear Power reduces from -153 to -68 indicating that the Bulls need to do much more work to remain relevant. For today, the Bulls need to overcome the levels of 5535 to maintain their upwards momentum whereas the Bears need to breach the levels of 5445 to maintain their downwards momentum.
2) The stochastics are in the neutral zone.
3) The Nifty has closed just above its 8EMA but has closed below its 13EMA and 21EMA. Also it has closed 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 get arrested. The MACD continues its attempt to indicate a breakout, but is falling short of it. The histogram remains in the negative, but is seen rising. The ADX is now favoring the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5630.
5) Considering the above, our trading plan for the day is as under.
a) Around 5500 we will open fresh short positions with a SL of 5525 and a target of 5400. We will add to these short positions only below 5380.
b) Around 5405 we will open fresh long positions with a SL of 5380 and a target of 5465. We will add to these long positions only above 5525.
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 did knock at the doors of a breakout. However, it managed to do just that and retreated back. The Nifty opened at 5499 with a nice positive gap of 28 points and traded within a range of 5530 and 5470 for most of the trading session. However, all attempts at a breakout were successfully blocked. The Nifty made a low of 5454 before closing at 5477 with a small gain of 5 points. We took a trade on the short side and booked a profit of 42 points by EOD.
Summary : The corrective up move on the Nifty seems to have been completed just within the cluster of the falling EMAs and the bearish setup can assert itself unless the Bulls take charge of the Nifty. Nifty has found it difficult to sustain above 5500, which indicates its inherent weakness.
1) The Elder Ray readings : Bull Power rises from -52 to +6 Bear Power reduces from -153 to -68 indicating that the Bulls need to do much more work to remain relevant. For today, the Bulls need to overcome the levels of 5535 to maintain their upwards momentum whereas the Bears need to breach the levels of 5445 to maintain their downwards momentum.
2) The stochastics are in the neutral zone.
3) The Nifty has closed just above its 8EMA but has closed below its 13EMA and 21EMA. Also it has closed 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 get arrested. The MACD continues its attempt to indicate a breakout, but is falling short of it. The histogram remains in the negative, but is seen rising. The ADX is now favoring the Bulls. The Parabolic SAR continues with its sell signal with the SL now shifted down to 5630.
5) Considering the above, our trading plan for the day is as under.
a) Around 5500 we will open fresh short positions with a SL of 5525 and a target of 5400. We will add to these short positions only below 5380.
b) Around 5405 we will open fresh long positions with a SL of 5380 and a target of 5465. We will add to these long positions only above 5525.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDeletecan we initiate longs at this point?
Shivam,
ReplyDeleteOpening long positions at this point of time seems to be a risk.
Only a aggressive long may be opened with a Strict SL of 25 points.
Nifty can break down if trades below 5370.
Opened short position at 5382 with a SL of 5412
ReplyDeleteBooked out at 5322 with a profit of 60 points.
ReplyDeleteSquared off positional short position taken last week (at 5385 NS) with a profit of 100 points.
ReplyDelete