Bulls stage a recovery after a Bearish opening hour. Yet Nifty remains Sell on Rise.
As discussed on Tuesday, the Bearish mood gathered momentum on the Nifty. The Nifty opened with a positive gap of 21 points but from the word go, the Nifty started to drift downwards and in the first hour itself touched 5701 which was to be the day's low. From thereon, the Bulls started their buying pressure, and the Nifty recovered to make a high of 5786 (which was lower than previous day's high 5810) before closing at 5780 with a gain of 45 points. We took a trade on the short side and could book a profit of 55 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -24 to -40 Bear Power rises from -116 to -126 indicating that the Bears are still in full control of the Nifty. 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 5690 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and are pointing across each other.
3) The Nifty has closed below all its key EMAs and also below its 200DMA and 100DMA. However, it has closed above its 50DMA (5709)
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may meet resistance soon. The MACD continues to be Bearish with the histogram also growing in the negative. The ADX is suggesting a minor loss of momentum for the Bears but is still favoring the Bears. The Parabolic SAR continues to give out its sell signal with the SL now shifted down to 6071.
5) Considering the above, our trading plan for the day is as under.
a) Around 5840 we will open fresh short positions with a SL of 5870 and a target of 5740. We will add to these short positions only below 5690.
b) Around 5715 we will open fresh long positions with a SL of 5690 and a target of 5790. We will add to these long positions only above 5870.
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Tuesday, the Bearish mood gathered momentum on the Nifty. The Nifty opened with a positive gap of 21 points but from the word go, the Nifty started to drift downwards and in the first hour itself touched 5701 which was to be the day's low. From thereon, the Bulls started their buying pressure, and the Nifty recovered to make a high of 5786 (which was lower than previous day's high 5810) before closing at 5780 with a gain of 45 points. We took a trade on the short side and could book a profit of 55 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -24 to -40 Bear Power rises from -116 to -126 indicating that the Bears are still in full control of the Nifty. 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 5690 to maintain their downwards momentum.
2) The stochastics are just above the oversold zone and are pointing across each other.
3) The Nifty has closed below all its key EMAs and also below its 200DMA and 100DMA. However, it has closed above its 50DMA (5709)
4) In the above chart, the volumes have decreased with the rise in the Nifty, indicating that the rise may meet resistance soon. The MACD continues to be Bearish with the histogram also growing in the negative. The ADX is suggesting a minor loss of momentum for the Bears but is still favoring the Bears. The Parabolic SAR continues to give out its sell signal with the SL now shifted down to 6071.
5) Considering the above, our trading plan for the day is as under.
a) Around 5840 we will open fresh short positions with a SL of 5870 and a target of 5740. We will add to these short positions only below 5690.
b) Around 5715 we will open fresh long positions with a SL of 5690 and a target of 5790. We will add to these long positions only above 5870.
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 positions at 5845 with a SL of 5875
ReplyDeleteSL hit at 5875
ReplyDeleteBooked out with a loss of 38 points
ReplyDelete