Nifty confirms topping out patterns, the trading range shits lower nearing supports.
As discussed yesterday, the Evening star pattern had its effect as expected. The Nifty opened with a minor gap up of 7 points at 6261 and made a quick high of 6270 during the first few minutes of trade. From thereon, the Nifty started its drift downwards and in the late hours of trade, the Nifty made a low of 6209 before closing at 6215 with a loss of 38 points.
1) The Elder Ray readings : Bull Power reduces from +96 to +60 Bear Power rises from +36 to -1 indicating that the Bears have now regained their lost grounds but now need to defend that position very fiercely. For today, the Bulls need to overcome the levels of 6275 to maintain their upwards momentum whereas the Bears need to breach the levels of 6205 to maintain their downwards momentum.
2) The stochastics are now out of the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also closed above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is now showing a downward indication with the histogram also going below the zero line. The ADX is showing equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now raised to 6145.
5) Considering the above, our trading plan for the day is as under.
a) Around 6175 we will open fresh long positions with a SL of 6150 and a target of 6255. We will add to these long positions only above 6285.
b) Around 6265 we will open fresh short positions with a SL of 6285 and a target of 6190. We will add to these short positions only below 6150.
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 Evening star pattern had its effect as expected. The Nifty opened with a minor gap up of 7 points at 6261 and made a quick high of 6270 during the first few minutes of trade. From thereon, the Nifty started its drift downwards and in the late hours of trade, the Nifty made a low of 6209 before closing at 6215 with a loss of 38 points.
1) The Elder Ray readings : Bull Power reduces from +96 to +60 Bear Power rises from +36 to -1 indicating that the Bears have now regained their lost grounds but now need to defend that position very fiercely. For today, the Bulls need to overcome the levels of 6275 to maintain their upwards momentum whereas the Bears need to breach the levels of 6205 to maintain their downwards momentum.
2) The stochastics are now out of the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also closed above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is now showing a downward indication with the histogram also going below the zero line. The ADX is showing equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now raised to 6145.
5) Considering the above, our trading plan for the day is as under.
a) Around 6175 we will open fresh long positions with a SL of 6150 and a target of 6255. We will add to these long positions only above 6285.
b) Around 6265 we will open fresh short positions with a SL of 6285 and a target of 6190. We will add to these short positions only below 6150.
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(b) has triggered and have opened fresh short positions at 6270 with a SL of 6290
ReplyDeletesir that was a very good stoploss since i was in a hurry i still manged to get few points profit by shorting nifty keeping sl of 6290 given by you , how do you mange such good stoploss as nifty just returned after touching high of 6288.95!!!
ReplyDeleteSL for short positions moved to 6230 ensuring 40 points profit.
ReplyDeleteTarget of 6195 achieved. Booked out with a profit of 75 points.
ReplyDelete