Start of a fresh week, sees Nifty in a Sell on Rise mode. Look out for resistances.
As discussed on Friday, the Nifty continued its journey heading southwards. The Nifty opened with a negative gap down of 17 points and barely made that up when it made a day high of 6186 before dipping down again to make a low of 6121 after which the Nifty closed at 6141 with a loss of 47 points. Our trading plan for going long at near 6120 almost triggered but it was at the fag end of the trading session and we did not take that trade.
1) The Elder Ray readings : Bull Power reduces from +83 to -11 Bear Power rises from -25 to -76 indicating that the Bears are now in the driving seat and that the Bulls need to get into their safe zone as their first priority. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds, whereas the Bears need to breach the levels of 6105 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are still pointing downwards.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have remained high with the fall in the Nifty indicating that the down move may continue. The MACD is also indicative of a down move, with the histogram also growing in the negative. The ADX is also suggesting a rise in the Bearish momentum. The Parabolic SAR has now turned into a Sell signal with the SL being initialized at 6343.
5) Considering the above, our trading plan for the day is as under.
a) Around 6180 we will open fresh short positions with a SL of 6205 and a target of 6105. We will add to these short positions only below 6075.
b) Around 6095 we will open fresh long positions with a SL of 6075 and a target of 6160. We will add to these long positions only above 6205.
Happy Trading !!!
THINKSOFT achieves our target on 08 Nov 2013.
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty continued its journey heading southwards. The Nifty opened with a negative gap down of 17 points and barely made that up when it made a day high of 6186 before dipping down again to make a low of 6121 after which the Nifty closed at 6141 with a loss of 47 points. Our trading plan for going long at near 6120 almost triggered but it was at the fag end of the trading session and we did not take that trade.
1) The Elder Ray readings : Bull Power reduces from +83 to -11 Bear Power rises from -25 to -76 indicating that the Bears are now in the driving seat and that the Bulls need to get into their safe zone as their first priority. For today, the Bulls need to overcome the levels of 6185 to regain their lost grounds, whereas the Bears need to breach the levels of 6105 to maintain their downwards momentum.
2) The stochastics are still in the neutral zone and are still pointing downwards.
3) The Nifty has closed below all its key EMAs but has closed above all its key DMAs.
4) In the above chart, the volumes have remained high with the fall in the Nifty indicating that the down move may continue. The MACD is also indicative of a down move, with the histogram also growing in the negative. The ADX is also suggesting a rise in the Bearish momentum. The Parabolic SAR has now turned into a Sell signal with the SL being initialized at 6343.
5) Considering the above, our trading plan for the day is as under.
a) Around 6180 we will open fresh short positions with a SL of 6205 and a target of 6105. We will add to these short positions only below 6075.
b) Around 6095 we will open fresh long positions with a SL of 6075 and a target of 6160. We will add to these long positions only above 6205.
Happy Trading !!!
THINKSOFT achieves our target on 08 Nov 2013.
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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