Nifty, after a evening star, reaffirms the down trend. Volatility may rise as Nifty dips.
In our yesterday's post, we expected the Trading range to shift lower. The Nifty after opening with a positive gap up of 14 points at 6229, breached the previous day's low of 6209 marginally, and then in a sudden spike, went all the way up to 6289. From thereon, the Bears took over, and the Nifty not only breached the day's low, but also the psychological level of 6190. It made a low of 6181 before closing at 6187 with a loss of 28 points. The Nifty has now made a lower high at 6289 and a lower low at 6181, which is indicative of the downward move, with the trading range shifting lower. We took a trade on the short side and could book a profit of 75 points in that trade.
1) The Elder Ray readings : Bull Power rises from +60 to +83 Bear Power also rises from -1 to -25 indicating that the volatility on the Nifty could rise from here and traders need to be cautious about not getting whipsawed. For today, the Bulls need to overcome the levels of 6290 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6155 to maintain their downwards momentum.
2) The stochastics are right in the middle of the neutral zone and are pointing downwards.
3) The Nifty has closed below its 8EMA and 13EMA however it has closed above its 21EMA and above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the downward move may continue. The MACD is also clearly signalling a down move with the histogram growing in the negative. The ADX is however, suggesting a equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 6161.
5) Considering the above, our trading plan for the day is as under.
a) Around 6145 we will open fresh long positions with a SL of 6120 and a target of 6210. We will add to these long positions only above 5255.
b) Around 6230 we will open fresh short positions with a SL of 6255 and a target of 6155. We will add to these short positions only below 6120.
Happy Trading !!!
Matured Positional Stock Calls as on 07 Nov 2013 day end.
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, we expected the Trading range to shift lower. The Nifty after opening with a positive gap up of 14 points at 6229, breached the previous day's low of 6209 marginally, and then in a sudden spike, went all the way up to 6289. From thereon, the Bears took over, and the Nifty not only breached the day's low, but also the psychological level of 6190. It made a low of 6181 before closing at 6187 with a loss of 28 points. The Nifty has now made a lower high at 6289 and a lower low at 6181, which is indicative of the downward move, with the trading range shifting lower. We took a trade on the short side and could book a profit of 75 points in that trade.
1) The Elder Ray readings : Bull Power rises from +60 to +83 Bear Power also rises from -1 to -25 indicating that the volatility on the Nifty could rise from here and traders need to be cautious about not getting whipsawed. For today, the Bulls need to overcome the levels of 6290 to maintain their upwards momentum, whereas the Bears need to breach the levels of 6155 to maintain their downwards momentum.
2) The stochastics are right in the middle of the neutral zone and are pointing downwards.
3) The Nifty has closed below its 8EMA and 13EMA however it has closed above its 21EMA and above all its key DMAs.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the downward move may continue. The MACD is also clearly signalling a down move with the histogram growing in the negative. The ADX is however, suggesting a equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Buy signal with the SL now shifted up to 6161.
5) Considering the above, our trading plan for the day is as under.
a) Around 6145 we will open fresh long positions with a SL of 6120 and a target of 6210. We will add to these long positions only above 5255.
b) Around 6230 we will open fresh short positions with a SL of 6255 and a target of 6155. We will add to these short positions only below 6120.
Happy Trading !!!
Matured Positional Stock Calls as on 07 Nov 2013 day end.
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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