Nifty gets bearish pounding for 8 straight sessions. Sell on Rise, and then Sell at will.
In our yesterday's post, we were expecting some green on the screen as Nifty was nearing intermediate supports. The Nifty opened with a 19 point negative gap down at 5999 and immediately ventured into the green making a intermediate high of 6032 during the initial hours of trade. The Nifty then hovered in a 25 point range between 6030 and 6005 for the next two hours of trade. We immediately saw a trading opportunity then, and posted a comment that the Nifty was moving in a expanding triangle and the next higher top would present a handsome shorting opportunity. As such, the Nifty made a higher high at 6042 and then slipped off to not only break the day's opening mark and the intraday low, but to make a new low at 5972 before closing at 5990. We took a short trade at 5940 and booked out at EOD with a profit of 55 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -48 to -91 Bear Power rises from -145 to -160 indicating that the Bears are tightening their vice like grip on the Nifty, and that the Bulls have made their own task that much harder. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The stochastics are well and deep into 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 increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards and the histogram continues to grow in the negative. The ADX continues to favor the Bears. The Parabolic SAR continues with its sell signal with the SL now lowered to 6303.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh short positions with a SL of 6055 and a target of 5970. We will add to these short positions only below 5930.
b) Around 5955 we will open fresh long positions with a SL of 5930 and a target of 6025. We will add to these long positions only above 6055.
Happy Trading !!!
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 were expecting some green on the screen as Nifty was nearing intermediate supports. The Nifty opened with a 19 point negative gap down at 5999 and immediately ventured into the green making a intermediate high of 6032 during the initial hours of trade. The Nifty then hovered in a 25 point range between 6030 and 6005 for the next two hours of trade. We immediately saw a trading opportunity then, and posted a comment that the Nifty was moving in a expanding triangle and the next higher top would present a handsome shorting opportunity. As such, the Nifty made a higher high at 6042 and then slipped off to not only break the day's opening mark and the intraday low, but to make a new low at 5972 before closing at 5990. We took a short trade at 5940 and booked out at EOD with a profit of 55 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -48 to -91 Bear Power rises from -145 to -160 indicating that the Bears are tightening their vice like grip on the Nifty, and that the Bulls have made their own task that much harder. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The stochastics are well and deep into 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 increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point downwards and the histogram continues to grow in the negative. The ADX continues to favor the Bears. The Parabolic SAR continues with its sell signal with the SL now lowered to 6303.
5) Considering the above, our trading plan for the day is as under.
a) Around 6030 we will open fresh short positions with a SL of 6055 and a target of 5970. We will add to these short positions only below 5930.
b) Around 5955 we will open fresh long positions with a SL of 5930 and a target of 6025. We will add to these long positions only above 6055.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has opened gap up and has swiftly moved above 6050.
ReplyDeleteHowever, the trading plan needs to be altered with this changed scenario.
Nifty is trading near the past two day's high of 6109 while the intermediate trend still remains downwards, with the current readings of the ADX and the 13EMA still favoring the Bears.
Considering this, we have opened fresh short positions at NF 6110 (NS 6078) with a SL of 35 points, considering that NS should not take out past two day's high of 6109.
This is a low risk trade, taken in the direction of the intermediate trend, and needs to be managed well. Hence, we are not setting out any immediate targets but will monitor the trade closely and will quit the trade if the intermediate trend shows any signs of reversal, whenever that happens and if that happens.
Trade seems to be working out well as of now.
ReplyDeleteSquared off at 6075 booking a profit of 35 points.
ReplyDelete