With a bearish assertion coming to the fore, Nifty expected to end week in the red.
As discussed yesterday, we had said "Bearish assertion needs confirmation". The Bears confirmed their assertion and how. The Nifty opened with a negative gap down of 26 points at 6097 and that was its high for the entire trading session. The Bears not only breached the supports of 6060, but pushed the Nifty below the levels of 6000, made a low of 5985 before closing the day at 5999 with a loss of 124 points. We took a trade in the short direction and could book a profit of 60 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +65 to -22 Bear Power rises from -32 to -134 indicating that the Bears seem to have taken away the game from the Bulls. For today, the Bulls need to overcome the levels of 6100 to regain their lost grounds whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The fast stochastics are in the oversold zone with the slow stochastics lagging way behind indicating some more room for a further downside.
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 resumes its downward journey, with the histogram too growing in the negative. The ADX is also suggesting a rise in the Bearish momentum and also a rise in the overall momentum. The Parabolic SAR continues with its sell call with the SL now shifted down to 6204.
5) Considering the above, our trading plan for the day is as under.
a) Around 6040 we will open fresh short positions with a SL of 6070 and a target of 5955. We will add to these short positions only below 5930.
b) Around 5950 we will open fresh long positions with a SL of 5930 and a target of 6030. We will add to these long positions only above 6070.
Happy Trading !!!
Sell call on CIPLA hit its target on 21 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 had said "Bearish assertion needs confirmation". The Bears confirmed their assertion and how. The Nifty opened with a negative gap down of 26 points at 6097 and that was its high for the entire trading session. The Bears not only breached the supports of 6060, but pushed the Nifty below the levels of 6000, made a low of 5985 before closing the day at 5999 with a loss of 124 points. We took a trade in the short direction and could book a profit of 60 points on that trade.
1) The Elder Ray readings : Bull Power reduces from +65 to -22 Bear Power rises from -32 to -134 indicating that the Bears seem to have taken away the game from the Bulls. For today, the Bulls need to overcome the levels of 6100 to regain their lost grounds whereas the Bears need to breach the levels of 5965 to maintain their downwards momentum.
2) The fast stochastics are in the oversold zone with the slow stochastics lagging way behind indicating some more room for a further downside.
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 resumes its downward journey, with the histogram too growing in the negative. The ADX is also suggesting a rise in the Bearish momentum and also a rise in the overall momentum. The Parabolic SAR continues with its sell call with the SL now shifted down to 6204.
5) Considering the above, our trading plan for the day is as under.
a) Around 6040 we will open fresh short positions with a SL of 6070 and a target of 5955. We will add to these short positions only below 5930.
b) Around 5950 we will open fresh long positions with a SL of 5930 and a target of 6030. We will add to these long positions only above 6070.
Happy Trading !!!
Sell call on CIPLA hit its target on 21 Nov 2013
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opens right into our resistance zone. Trading plan(a) got triggered and have opened fresh short position 6038 with a SL of 6068.
ReplyDeleteBooked out with a profit of 60 points at 5978.
ReplyDelete