Nifty starts the month with a bearish sentiment around. Sell on Rise is the mantra.
As discussed yesterday, we saw Bulls losing their grip at the end of the month. The Nifty opened with a negative gap of 32 points at 5801, made a quick high of 5810 and then slid below 5780 swiftly. Then the Nifty traded bearishly between 5745 and 5780 for almost 5 hours. In the last hour, there was an attempt to recovery which got fizzled out immediately and the Nifty breached the day's low to make a new low at 5719 and closed at 5735 with a loss of 98 points. We took a trade on the short side and booked out with a profit of 55 points.
1) The Elder Ray readings : Bull Power reduces from +58 to -24 Bear Power rises from -31 to -116 indicating that the Bulls have now surrendered their safe zone and need to recover immediately. For today the Bulls need to overcome the levels of 5825 to regain their lost grounds whereas the Bears need to breach the levels of 5705 to maintain their downwards momentum.
2) The stochastics are are approaching the oversold zone, and are pointing downwards, indicating some more room for a further fall.
3) The Nifty has now closed below all its key EMAs and also below its 200DMA and 100DMA. However, it has closed above its 50DMA (5791).
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating that Nifty may find support soon. The MACD has now triggered on the downside, with the histogram also turning negative. The ADX is suggesting a rise in the downwards momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6095.
5) Considering the above, our trading plan for the day is as under.
a) Around 5760 we will open fresh short positions with a SL of 5785 and a target of 5695. We will add to these short positions only below 5645.
b) Around 5675 we will open fresh long positions with a SL of 5645 and a target of 5745. We will add to these long positions only above 5785.
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, we saw Bulls losing their grip at the end of the month. The Nifty opened with a negative gap of 32 points at 5801, made a quick high of 5810 and then slid below 5780 swiftly. Then the Nifty traded bearishly between 5745 and 5780 for almost 5 hours. In the last hour, there was an attempt to recovery which got fizzled out immediately and the Nifty breached the day's low to make a new low at 5719 and closed at 5735 with a loss of 98 points. We took a trade on the short side and booked out with a profit of 55 points.
1) The Elder Ray readings : Bull Power reduces from +58 to -24 Bear Power rises from -31 to -116 indicating that the Bulls have now surrendered their safe zone and need to recover immediately. For today the Bulls need to overcome the levels of 5825 to regain their lost grounds whereas the Bears need to breach the levels of 5705 to maintain their downwards momentum.
2) The stochastics are are approaching the oversold zone, and are pointing downwards, indicating some more room for a further fall.
3) The Nifty has now closed below all its key EMAs and also below its 200DMA and 100DMA. However, it has closed above its 50DMA (5791).
4) In the above chart, the volumes have remained stagnant with the fall in the Nifty indicating that Nifty may find support soon. The MACD has now triggered on the downside, with the histogram also turning negative. The ADX is suggesting a rise in the downwards momentum. The Parabolic SAR continues with its sell signal with the SL now shifted down to 6095.
5) Considering the above, our trading plan for the day is as under.
a) Around 5760 we will open fresh short positions with a SL of 5785 and a target of 5695. We will add to these short positions only below 5645.
b) Around 5675 we will open fresh long positions with a SL of 5645 and a target of 5745. We will add to these long positions only above 5785.
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) has triggered and have opened fresh intraday short position at 5760 with SL of 5785
ReplyDelete