Nifty continues to trade in a confined range with bearishness growing gradually.
As discussed yesterday, the Nifty continued its "Tentative moves of consolidation" for yet another day. The Nifty opened with a positive gap up of 7 points at 6182 and then traded between 6188 and 6148 for the entire trading session before closing at 6168, right in the middle of the trading range. None of our trading plans triggered, and we were happy watching the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power rises from -32 to -28 Bear Power also rises from -63 to -68 indicating that both the parties have tried to make their mild efforts yesterday. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6140 to maintain their downwards momentum.
2) The stochastics have now reached the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD continues to point downwards, but the histogram has stopped growing, indicative of nearby supports to the Nifty. The ADX is suggesting lowering of momentum for both the Bulls as well as the Bears. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 6350.
5) Considering the above, our trading plan for the day is as under.
a) Around 6200 we will open fresh short positions with a SL of 6220 and a target of 6150. We will add to these short positions only below 6120.
b) Around 6140 we will open fresh long positions with a SL of 6120 and a target of 6190. We will add to these long positions only above 6220.
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 Nifty continued its "Tentative moves of consolidation" for yet another day. The Nifty opened with a positive gap up of 7 points at 6182 and then traded between 6188 and 6148 for the entire trading session before closing at 6168, right in the middle of the trading range. None of our trading plans triggered, and we were happy watching the gyrations of the Nifty.
1) The Elder Ray readings : Bull Power rises from -32 to -28 Bear Power also rises from -63 to -68 indicating that both the parties have tried to make their mild efforts yesterday. For today, the Bulls need to overcome the levels of 6210 to regain their lost grounds whereas the Bears need to breach the levels of 6140 to maintain their downwards momentum.
2) The stochastics have now reached the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested soon. The MACD continues to point downwards, but the histogram has stopped growing, indicative of nearby supports to the Nifty. The ADX is suggesting lowering of momentum for both the Bulls as well as the Bears. The Parabolic SAR continues with its Sell signal with the SL now shifted down to 6350.
5) Considering the above, our trading plan for the day is as under.
a) Around 6200 we will open fresh short positions with a SL of 6220 and a target of 6150. We will add to these short positions only below 6120.
b) Around 6140 we will open fresh long positions with a SL of 6120 and a target of 6190. We will add to these long positions only above 6220.
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(b) has triggered and have opened fresh long position for intraday at 6140 with a SL of 6120
ReplyDeletePart booked @ 6175 with a profit of 35 points.
ReplyDeleteRiding the rest with a TSL of 6160
Trading plan(b) hits its target.
ReplyDeleteBooked full at 6190 with a profit of 50 points.
Total profit till now 35+50=85 points.
Now trading plan(a) has triggered.
ReplyDeleteOpened fresh intraday short position at 6200 with a SL of 6220
Still holding shorts despite Nifty spot hitting our SL but Nifty futures not hitting the SL of 20 points at 6251.
ReplyDeleteBooked 20 points loss as SL hit at 6251 Nifty futures
ReplyDeleteReopened fresh short at 6202 with a SL of 6222
ReplyDeleteBooked out shorts at 6178 for a quick 24 points.
ReplyDeleteToday's trades
35+50+24-20=89 points profit