Nifty continues to consolidate in a confined range. Bi-directional trade remains on.
As discussed yesterday, Nifty was in consolidation phase. The Nifty opened with a narrow gap up of 10 points at 6221, but immediately got sold off and breached the psychological level of 6200 after making a quick high of 6225. The Nifty then traded within a confined range but sustained below 6200 till the end of trade. The low for the day was at 6170 before closing at 6191 with a nett loss of 20 points. We took a trade on the long side as per our trading plan and could book a profit of 24 points by EOD.
1) The Elder Ray readings : Bull Power rises from -31 to -19 Bear Power slips from -81 to -73 indicating that the Bears still hold the grip on the Nifty, but the Bulls are crawling back towards safety. For today, the Bulls need to overcome the levels of 6240 to regain their lost grounds whereas the Bears need to breach the levels of 6160 to maintain their downwards momentum.
2) The stochastics are in the neutral zone, pointing downwards and fast approaching the oversold zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA. However, the Nifty has closed above its 100DMA and its 200DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the Nifty may find support at low levels. The MACD continues with its sell signal, with the histogram too growing in the negative. The ADX is suggesting a loss of momentum for the Bears but is still favoring a downwards move. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6160.
5) Considering the above, our trading plan for the day is as under.
a) Around 6155 we will open fresh long positions with a SL of 6135 and a target of 6220. We will add to these long positions only above 6250.
b) Around 6230 we will open fresh short positions with a SL of 6250 and a target of 6160. We will add to these short positions only below 6135.
Happy Trading !!!
Buy calls on PIIND & GDL hit their targets on 06 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, Nifty was in consolidation phase. The Nifty opened with a narrow gap up of 10 points at 6221, but immediately got sold off and breached the psychological level of 6200 after making a quick high of 6225. The Nifty then traded within a confined range but sustained below 6200 till the end of trade. The low for the day was at 6170 before closing at 6191 with a nett loss of 20 points. We took a trade on the long side as per our trading plan and could book a profit of 24 points by EOD.
1) The Elder Ray readings : Bull Power rises from -31 to -19 Bear Power slips from -81 to -73 indicating that the Bears still hold the grip on the Nifty, but the Bulls are crawling back towards safety. For today, the Bulls need to overcome the levels of 6240 to regain their lost grounds whereas the Bears need to breach the levels of 6160 to maintain their downwards momentum.
2) The stochastics are in the neutral zone, pointing downwards and fast approaching the oversold zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA. However, the Nifty has closed above its 100DMA and its 200DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty, indicating that the Nifty may find support at low levels. The MACD continues with its sell signal, with the histogram too growing in the negative. The ADX is suggesting a loss of momentum for the Bears but is still favoring a downwards move. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6160.
5) Considering the above, our trading plan for the day is as under.
a) Around 6155 we will open fresh long positions with a SL of 6135 and a target of 6220. We will add to these long positions only above 6250.
b) Around 6230 we will open fresh short positions with a SL of 6250 and a target of 6160. We will add to these short positions only below 6135.
Happy Trading !!!
Buy calls on PIIND & GDL hit their targets on 06 Jan 2014
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 have opened fresh intraday long position at 6154 with a SL of 6134
ReplyDeleteBooked part at 6188 with a profit of 34 points.
ReplyDeleteTSL at 6174 now for the rest.
TSL shifted up to 6184 now. CMP 6193
ReplyDeleteTSL hit at 6184.
ReplyDeleteBooked out with another profit of 30 points.
Total profit of 64 points on two trades taken at 6154 Nifty spot.