After 6 consecutive down days, Nifty may look to consolidate. Sell on Rise continues.
As discussed yesterday, we saw the Nifty get a Weekly start on a weak note. The Nifty opened with a 30 point gap down at 6110 and then traded bearishly for most of the trading session. One rise on the Nifty by the Bulls, saw the Nifty close the gap and make a high of 6142, but that one got fizzled out by the end of the day, with the Nifty making a low of 6068 and closing at 6079 with a loss of 62 points. During this down move, the Bears have allowed the Bulls to touch the Nifty in the green on each trading day and then they have punished the Nifty and closed it near the day's lows.
1) The Elder Ray readings : Bull Power reduces from -11 to -38 Bear Power rises from -76 to -112 indicating that the Bears are now driving the Nifty and that the Bulls need to rise to the occasion soon, else be left out. For today, the Bulls need to overcome the levels of 6165 to regain their lost grounds whereas the Bears need to breach the levels of 6050 to maintain their downwards momentum.
2) The stochastics are pointing downwards but are fast approaching the oversold zone.
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 decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is pointing to a bigger down move, with the histogram also growing in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its sell signal with the SL now brought down to 6337.
5) Considering the above, our trading plan for the day is as under.
a) Around 6105 we will open fresh short positions with a SL of 6130 and a target of 6035. We will add to these short positions only below 6010.
b) Around 6025 we will open fresh long positions with a SL of 6110 and a target of 6100. We will add to these long positions only above 6130.
Happy Trading !!!
Buy calls on SUVEN & HEXAWARE and Sell calls on ACC & HINDUNILVR hit their targets on 11 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 yesterday, we saw the Nifty get a Weekly start on a weak note. The Nifty opened with a 30 point gap down at 6110 and then traded bearishly for most of the trading session. One rise on the Nifty by the Bulls, saw the Nifty close the gap and make a high of 6142, but that one got fizzled out by the end of the day, with the Nifty making a low of 6068 and closing at 6079 with a loss of 62 points. During this down move, the Bears have allowed the Bulls to touch the Nifty in the green on each trading day and then they have punished the Nifty and closed it near the day's lows.
1) The Elder Ray readings : Bull Power reduces from -11 to -38 Bear Power rises from -76 to -112 indicating that the Bears are now driving the Nifty and that the Bulls need to rise to the occasion soon, else be left out. For today, the Bulls need to overcome the levels of 6165 to regain their lost grounds whereas the Bears need to breach the levels of 6050 to maintain their downwards momentum.
2) The stochastics are pointing downwards but are fast approaching the oversold zone.
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 decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD is pointing to a bigger down move, with the histogram also growing in the negative. The ADX is suggesting a rise in the Bearish momentum. The Parabolic SAR continues with its sell signal with the SL now brought down to 6337.
5) Considering the above, our trading plan for the day is as under.
a) Around 6105 we will open fresh short positions with a SL of 6130 and a target of 6035. We will add to these short positions only below 6010.
b) Around 6025 we will open fresh long positions with a SL of 6110 and a target of 6100. We will add to these long positions only above 6130.
Happy Trading !!!
Buy calls on SUVEN & HEXAWARE and Sell calls on ACC & HINDUNILVR hit their targets on 11 Nov 2013
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 got triggered and have opened fresh short position at 6106 with a SL of 6131
ReplyDeleteTarget achieved 6035 hit. Booked out at target with a profit of 71 points.
ReplyDelete