Post a huge gap up, Nifty spends entire week filling it. Returns to where it all started.
As discussed yesterday, the "Consolidation Continued" on the Nifty, with the Nifty opening with a negative gap down of 31 points at 6277 making a quick high of 6287 and then trading in a narrow range of 30 points for almost the entire trading session. In the last hour of trade though the Nifty slipped below the intraday lows and made a low of 6231 before closing at 6237. We took a trade on the long side as per our trading plan, but lost 30 points on the trade as our SL of 6240 got hit.
1) The Elder Ray readings : Bull Power reduces from +99 to +58 Bear Power rises from +53 to +1 indicating that the Bears are now just about to regain their footing with even a minor gap down, and that this may be the break they are looking out for. Bulls need to pick up right away. For today, the Bulls need to overcome the levels of 6290 to maintain their upwards momentum whereas the Bears need to breach the levels of 6225 to regain their lost grounds.
2) The stochastics are out of the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also 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 continues to point upwards, but the histogram is reducing although remaining above the zero line. The ADX is now signalling a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6086.
5) Considering the above, our trading plan for the day is as under.
a) Around 6195 we will open fresh long positions with a SL of 6170 and a target of 6270. We will add to these long positions only above 6300.
b) Around 6280 we will open fresh short positions with a SL of 6300 and a target of 6210. We will add to these short positions only below 6170.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the "Consolidation Continued" on the Nifty, with the Nifty opening with a negative gap down of 31 points at 6277 making a quick high of 6287 and then trading in a narrow range of 30 points for almost the entire trading session. In the last hour of trade though the Nifty slipped below the intraday lows and made a low of 6231 before closing at 6237. We took a trade on the long side as per our trading plan, but lost 30 points on the trade as our SL of 6240 got hit.
1) The Elder Ray readings : Bull Power reduces from +99 to +58 Bear Power rises from +53 to +1 indicating that the Bears are now just about to regain their footing with even a minor gap down, and that this may be the break they are looking out for. Bulls need to pick up right away. For today, the Bulls need to overcome the levels of 6290 to maintain their upwards momentum whereas the Bears need to breach the levels of 6225 to regain their lost grounds.
2) The stochastics are out of the overbought zone and are pointing downwards.
3) The Nifty has closed below its 8EMA but has closed above its 13EMA and 21EMA. The Nifty has also 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 continues to point upwards, but the histogram is reducing although remaining above the zero line. The ADX is now signalling a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now raised to 6086.
5) Considering the above, our trading plan for the day is as under.
a) Around 6195 we will open fresh long positions with a SL of 6170 and a target of 6270. We will add to these long positions only above 6300.
b) Around 6280 we will open fresh short positions with a SL of 6300 and a target of 6210. We will add to these short positions only below 6170.
Happy Trading !!!
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 triggered and opened fresh long position at 6190 with SL of 6170
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