A late evening sell off, takes the grip away from the Bulls. Bearishness creeps in.
As discussed on Friday, the Nifty was in equilibrium at the start of a fresh series. The Nifty opened with a 23 point positive gap up. But could not maintain it. The Nifty made a quick high at 5909 and then traded sheepishly but below 5900 throughout the trading session. In the last hour of trade though the Nifty slid below 5850 and closed at 5833 with a loss of 49 points after making a day low of 5819.
1) The Elder Ray readings : Bull Power reduces from +64 to +58 Bear Power rises from +10 to -31 indicating that the Bears have now recovered and the Bulls are slipping out, but still in the reckoning. For today the Bulls need to overcome the levels of 5910 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5815 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are pointing downwards.
3) The Nifty has closed below its 8EMA and 13EMA, but has closed above its 21EMA. The Nifty has also closed below its 200DMA, but above its 10DMA and 50DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD has just about completed its trigger on the short side, with the histogram now ready to fall below zero. The ADX is showing a crossover of the Bearish momentum over the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6110.
5) Considering the above, our trading plan for the day is as under.
a) Around 5860 we will open fresh short positions with a SL of 5885 and a target of 5760. We will add to these short positions only below 5735.
b) Around 5755 we will open fresh long positions with a SL of 5735 and a target of 5835. We will add to these long positions only above 5885.
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, the Nifty was in equilibrium at the start of a fresh series. The Nifty opened with a 23 point positive gap up. But could not maintain it. The Nifty made a quick high at 5909 and then traded sheepishly but below 5900 throughout the trading session. In the last hour of trade though the Nifty slid below 5850 and closed at 5833 with a loss of 49 points after making a day low of 5819.
1) The Elder Ray readings : Bull Power reduces from +64 to +58 Bear Power rises from +10 to -31 indicating that the Bears have now recovered and the Bulls are slipping out, but still in the reckoning. For today the Bulls need to overcome the levels of 5910 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5815 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are pointing downwards.
3) The Nifty has closed below its 8EMA and 13EMA, but has closed above its 21EMA. The Nifty has also closed below its 200DMA, but above its 10DMA and 50DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD has just about completed its trigger on the short side, with the histogram now ready to fall below zero. The ADX is showing a crossover of the Bearish momentum over the Bullish momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6110.
5) Considering the above, our trading plan for the day is as under.
a) Around 5860 we will open fresh short positions with a SL of 5885 and a target of 5760. We will add to these short positions only below 5735.
b) Around 5755 we will open fresh long positions with a SL of 5735 and a target of 5835. We will add to these long positions only above 5885.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
sir
ReplyDeleteis this the right time to go long as nifty near 5755 levels?
Shivam,
ReplyDeleteNot at all. The advance declines are not favorable yet.