Nifty holds on to key support levels and bounces back but remains sell on rise.
As discussed yesterday, the Bulls retained their control on the Nifty, however, they missed out on the much needed thrust for the up move to continue and the Bears had a look in. The Nifty opened with a positive gap of 7 points at 6210 and made a quick high of 6218 and then got sold off to reach the lows of 6117 and traded bearishly for most of the trading session. A late hour flourish by the Bulls then saw the Nifty recover most of the losses to close at 6178 which was 60 points above the low but quite below the psychological level of 6200. We took two trades and could book a minor profit of 10 points as one of the trades hit the SL.
1) The Elder Ray readings : Bull Power reduces from +154 to +136 Bear Power rises from +116 to +35 indicating that though the Bulls have still retained the control on the Nifty, the Bears have been gaining steadily and quietly during the past 3 trading sessions. For today, the Bulls need to overcome the levels of 6235 to maintain their upwards momentum whereas the Bears need to breach the levels of 6095 to regain their lost grounds.
2) The stochastics continue to be in the oversold zone.
3) The Nifty continues to close above all its key DMAs and also above all its key EMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to remain positive but the histogram is showing a minor decrease but in the positive zone. The ADX is showing a loss of momentum for the Bulls and a rise in momentum for the Bears. The Parabolic SAR continues with its Buy signal with the SL now raised to 5989.
5) Considering the above, our trading plan for the day is as under.
a) Around 6235 we will open fresh short positions with a SL of 6250 and a target of 6145. We will add to these short positions only below 6105.
b) Around 6125 we will open fresh long positions with a SL of 6105 and a target of 6210. We will add to these long positions only above 6250.
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 Bulls retained their control on the Nifty, however, they missed out on the much needed thrust for the up move to continue and the Bears had a look in. The Nifty opened with a positive gap of 7 points at 6210 and made a quick high of 6218 and then got sold off to reach the lows of 6117 and traded bearishly for most of the trading session. A late hour flourish by the Bulls then saw the Nifty recover most of the losses to close at 6178 which was 60 points above the low but quite below the psychological level of 6200. We took two trades and could book a minor profit of 10 points as one of the trades hit the SL.
1) The Elder Ray readings : Bull Power reduces from +154 to +136 Bear Power rises from +116 to +35 indicating that though the Bulls have still retained the control on the Nifty, the Bears have been gaining steadily and quietly during the past 3 trading sessions. For today, the Bulls need to overcome the levels of 6235 to maintain their upwards momentum whereas the Bears need to breach the levels of 6095 to regain their lost grounds.
2) The stochastics continue to be in the oversold zone.
3) The Nifty continues to close above all its key DMAs and also above all its key EMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the down move may continue. The MACD continues to remain positive but the histogram is showing a minor decrease but in the positive zone. The ADX is showing a loss of momentum for the Bulls and a rise in momentum for the Bears. The Parabolic SAR continues with its Buy signal with the SL now raised to 5989.
5) Considering the above, our trading plan for the day is as under.
a) Around 6235 we will open fresh short positions with a SL of 6250 and a target of 6145. We will add to these short positions only below 6105.
b) Around 6125 we will open fresh long positions with a SL of 6105 and a target of 6210. We will add to these long positions only above 6250.
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 short intraday position at 6240 with a SL of 6260
ReplyDeletePart booked at 6195. Riding the rest. Will re-enter shorts if Nifty spot comes around 6220 again.
ReplyDeleteSL for short positions now at 6185 nifty spot level for close above that in the 15 min. chart
ReplyDeleteBooked out full at 6185.
ReplyDeleteFirst lot profit 6240 - 6195 = 45 points
Second lot 6240 - 6185 = 55 points
total profit 100 points on two lots.
Trading plan (a) hits its target now.
ReplyDelete