After 7 consecutive red candles, there may be some green on the screen expected.
In our yesterday's post we had said "Down move may accelerate", and the markets obliged us. The Nifty opened with a minor positive gap up of 8 points at 6087 and made a quick high of 6109 (which was the trigger of our trading plan a) and then came the sell off and the Nifty accelerated its downfall in the last hour of trade. The Nifty made a low of 6012 before closing at 6018 with a loss of 61 points. Our trade taken in the short direction, yielded us a profit of 71 points as our trading plan(a) hit its target of 6035.
1) The Elder Ray readings : Bull Power reduces from -38 to -48 Bear Power rises from -112 to -145 indicating that the Bears are now firmly in the driver's seat. For today, the Bulls need to overcome the levels of 6130 to regain their lost grounds whereas the Bears need to breach the levels of 5985 to maintain their downwards momentum.
2) The stochastics are deep into the oversold zone now.
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 increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards with the histogram too growing in the negative. The ADX continues to favor the Bears. The Parabolic SAR too continues with its sell signal with the SL now brought down to 6324.
5) Considering the above, our trading plan for the day is as under.
a) Around 5970 we will open fresh long positions with a SL of 5950 and a target of 6050. We will add to these long positions only above 6085.
b) Around 6065 we will open fresh short positions with a SL of 6085 and a target of 5980. We will add to these short positions only below 5950.
Happy Trading !!!
Buy call on BAJFINANCE hit its target on 12 Nov 13
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 had said "Down move may accelerate", and the markets obliged us. The Nifty opened with a minor positive gap up of 8 points at 6087 and made a quick high of 6109 (which was the trigger of our trading plan a) and then came the sell off and the Nifty accelerated its downfall in the last hour of trade. The Nifty made a low of 6012 before closing at 6018 with a loss of 61 points. Our trade taken in the short direction, yielded us a profit of 71 points as our trading plan(a) hit its target of 6035.
1) The Elder Ray readings : Bull Power reduces from -38 to -48 Bear Power rises from -112 to -145 indicating that the Bears are now firmly in the driver's seat. For today, the Bulls need to overcome the levels of 6130 to regain their lost grounds whereas the Bears need to breach the levels of 5985 to maintain their downwards momentum.
2) The stochastics are deep into the oversold zone now.
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 increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards with the histogram too growing in the negative. The ADX continues to favor the Bears. The Parabolic SAR too continues with its sell signal with the SL now brought down to 6324.
5) Considering the above, our trading plan for the day is as under.
a) Around 5970 we will open fresh long positions with a SL of 5950 and a target of 6050. We will add to these long positions only above 6085.
b) Around 6065 we will open fresh short positions with a SL of 6085 and a target of 5980. We will add to these short positions only below 5950.
Happy Trading !!!
Buy call on BAJFINANCE hit its target on 12 Nov 13
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty grinding slowly in a narrow band of 6005 to 6025. Waiting for trading plan (b) to trigger, which if happens, promises to give a handsome return, as the Nifty is trading in a expanding triangle with the top near to our entry point.
ReplyDeleteWaiting patiently till then.