Nifty stays put while the trading range widens. Bearishness stays technically.
As discussed on Friday, the Bearish Laziness continued on the Nifty. The Nifty opened with a positive gap of 11 points at 6179 and then traded bearishly in the first hour of trade hitting a low of 6140 (exactly at our identified point of support) and then soared to to establish newer intraday highs for the next 4 hours of trade. However, after reaching a high of 6239, the Nifty got sold off in the last couple of hours of trade and closed with a gain of just 3 points at 6171. We took 4 trades and could book a nett profit of 89 points in those. One of the trades hit its SL.
1) The Elder Ray readings : Bull Power rises from -28 to +30 Bear Power also rises from -68 to -70 indicating that the Nifty has now reached a equilibrium stage. For today, the Bulls need to overcome the levels of 6235 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to maintain their downwards momentum.
2) The stochastics are now well and deep into the oversold zone.
3) The Nifty continues to close below all its key EMAs and its 50DMA, but above its 100DMA and 200DMA.
4) In the above chart, the volumes have increased with the Nifty remaining majorly stagnant, indicating the directionless nature of this move. The MACD continues to point downwards but the histogram is seen coming nearer to the zero line. The ADX is also suggesting equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6346.
5) Considering the above, our trading plan for the day is as under.
a) Around 6115 we will open fresh long positions with a SL of 6095 and a target of 6215. We will add to these long positions only above 6240.
b) Around 6220 we will open fresh short positions with a SL of 6240 and a target of 6130. We will add to these short positions only below 6095.
Happy Trading !!!
Buy calls on GULFOILCOR & MUTHOOTFIN and Sell call on ABIRLANUVO hit their targets on 10 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 on Friday, the Bearish Laziness continued on the Nifty. The Nifty opened with a positive gap of 11 points at 6179 and then traded bearishly in the first hour of trade hitting a low of 6140 (exactly at our identified point of support) and then soared to to establish newer intraday highs for the next 4 hours of trade. However, after reaching a high of 6239, the Nifty got sold off in the last couple of hours of trade and closed with a gain of just 3 points at 6171. We took 4 trades and could book a nett profit of 89 points in those. One of the trades hit its SL.
1) The Elder Ray readings : Bull Power rises from -28 to +30 Bear Power also rises from -68 to -70 indicating that the Nifty has now reached a equilibrium stage. For today, the Bulls need to overcome the levels of 6235 to maintain their upwards momentum whereas the Bears need to breach the levels of 6135 to maintain their downwards momentum.
2) The stochastics are now well and deep into the oversold zone.
3) The Nifty continues to close below all its key EMAs and its 50DMA, but above its 100DMA and 200DMA.
4) In the above chart, the volumes have increased with the Nifty remaining majorly stagnant, indicating the directionless nature of this move. The MACD continues to point downwards but the histogram is seen coming nearer to the zero line. The ADX is also suggesting equilibrium amongst the Bulls and the Bears. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6346.
5) Considering the above, our trading plan for the day is as under.
a) Around 6115 we will open fresh long positions with a SL of 6095 and a target of 6215. We will add to these long positions only above 6240.
b) Around 6220 we will open fresh short positions with a SL of 6240 and a target of 6130. We will add to these short positions only below 6095.
Happy Trading !!!
Buy calls on GULFOILCOR & MUTHOOTFIN and Sell call on ABIRLANUVO hit their targets on 10 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 (b) has triggered right at the opening mark. Opened fresh short position at 6225 with a SL of 6245
ReplyDeleteBooked out with a loss of 20 points as SL hit.
ReplyDeletesir nifty went to nd sirs breakout target...however the move came near 3pm...do you recommend trading(opening fresh position) in final hour...
ReplyDeleteShivam,
DeleteND Sir's system signaled a break out right in the opening few minutes. And it took almost the entire day to reach the break out target. The beauty of that system is that in the entire day, the Nifty never even came near to the break out zone.
Yes, that signal was tradeable right at the start of the day.
As to your question, we never open fresh positions in the last hour of trade as we are primarily intraday traders.
thanks sir for reply
ReplyDelete