Dismal global cues may help the Bears to get a stranglehold on the Nifty today.
As discussed yesterday, the Trading range is getting lower, and it was very evident. The zone around 6180 which on earlier occasions had provided support, now became a resistance zone. The Nifty, despite a positive opening with a opening gap of 35 points, remained subdued without any Bullish followup. The Nifty could only reach a high of 6170 and in the late afternoon trade, the Nifty slipped below the key pivot level of 6130 to make a low of 6110 before closing at 6120. We took a trade on the short side, with two lots and booked a profit of 100 points on both lots put together.
1) The Elder Ray readings : Bull Power rises from -79 to -55 Bear Power reduces from -157 to -115 indicating that the Bulls have recovered, but just a bit. 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 6095 to maintain their downwards momentum.
2) The stochastics are now completely in the oversold zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. The 200DMA now is at 5966, indicating Bears have a free territory of about 150 points.
4) In the above chart, the volumes have reduced with the Nifty remaining flat, indicating a pause before a storm. The MACD continues to point downwards, with the histogram too growing in the negative. The ADX is suggesting a pause in the Bearish momentum, but is still favoring a down move. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6340.
5) Considering the above, our trading plan for the day is as under.
a) Around 6135 we will open fresh short positions with a SL of 6155 and a target of 6085. We will add to these short positions only below 6055.
b) Around 6075 we will open fresh long positions with a SL of 6055 and a target of 6130. We will add to these long positions only above 6155.
Happy Trading !!!
Buy call on GRANULES hit its target on 29 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, the Trading range is getting lower, and it was very evident. The zone around 6180 which on earlier occasions had provided support, now became a resistance zone. The Nifty, despite a positive opening with a opening gap of 35 points, remained subdued without any Bullish followup. The Nifty could only reach a high of 6170 and in the late afternoon trade, the Nifty slipped below the key pivot level of 6130 to make a low of 6110 before closing at 6120. We took a trade on the short side, with two lots and booked a profit of 100 points on both lots put together.
1) The Elder Ray readings : Bull Power rises from -79 to -55 Bear Power reduces from -157 to -115 indicating that the Bulls have recovered, but just a bit. 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 6095 to maintain their downwards momentum.
2) The stochastics are now completely in the oversold zone.
3) The Nifty has now closed below all its key EMAs and also below its 50DMA and 100DMA. The 200DMA now is at 5966, indicating Bears have a free territory of about 150 points.
4) In the above chart, the volumes have reduced with the Nifty remaining flat, indicating a pause before a storm. The MACD continues to point downwards, with the histogram too growing in the negative. The ADX is suggesting a pause in the Bearish momentum, but is still favoring a down move. The Parabolic SAR continues with its Sell signal with the SL now brought down to 6340.
5) Considering the above, our trading plan for the day is as under.
a) Around 6135 we will open fresh short positions with a SL of 6155 and a target of 6085. We will add to these short positions only below 6055.
b) Around 6075 we will open fresh long positions with a SL of 6055 and a target of 6130. We will add to these long positions only above 6155.
Happy Trading !!!
Buy call on GRANULES hit its target on 29 Jan 2014
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opened right into our identified support zone of 6075 6055 and trading in between those levels.
ReplyDeleteWaiting for a decisive breach of either levels to open fresh intraday positions.
Opened fresh short positions at 6065 by buying 100 qty (two lots) 6050 PE for current series at 12.80
ReplyDeleteWe will hold this till near EOD.
Maximum loss is of 2600 Rs. or 26 points whichever way one looks at it.
Squared off one lot at 26 recovering the cost and recovering the invested amount.
ReplyDeleteWaiting for EOD with one lot in hand.