Nifty respects supports and recovers from lows, yet technicals remain bearish.
As discussed yesterday, Nifty was "Oversold and approaching supports". The Nifty opened with a negative gap down of 54 points at 5948 and then made a quick low of 5933 where a bit of buying and short covering creep-ed in. The Nifty then kept on making higher lows for every hour of trade and in the last hour surged ahead to overcome crucial 200DMA levels and made a high of 6018 before closing at 6001. Once again our identified zone of 5955 5935 cushioned the supports for the Nifty. We took a trade on the long side and booked out with a profit of 25 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -86 to -120 Bear Power rises from -166 to -205 indicating that despite the recovery, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 6115 to regain their lost grounds whereas the Bears need to breach the levels of 5910 to maintain their downwards momentum.
2) The stochastics remain deeply into the oversold zone still.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA(5975)
4) In the above chart, the volumes have increased with the Nifty staying stagnant, indicating that participants are indecisive on the direction. The MACD continues to point downwards with the histogram growing in the negative. The ADX is suggesting a rise in the Bearish momentum as of now. The Parabolic SAR continues to give out its Sell signal with the SL now brought down to 6262.
5) Considering the above, our trading plan for the day is as under.
a) Around 6040 we will open fresh short positions with a SL of 6060 and a target of 5970. We will add to these short positions only below 5940.
b) Around 5960 we will open fresh long positions with a SL of 5940 and a target of 6030. We will add to these long positions only above 6060.
Happy Trading !!!
Buy calls on MONSANTO GATI AUROPHARMA & TVSMOTOR and Sell call on KARURVYSYA hit their targets on 04 Feb 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 "Oversold and approaching supports". The Nifty opened with a negative gap down of 54 points at 5948 and then made a quick low of 5933 where a bit of buying and short covering creep-ed in. The Nifty then kept on making higher lows for every hour of trade and in the last hour surged ahead to overcome crucial 200DMA levels and made a high of 6018 before closing at 6001. Once again our identified zone of 5955 5935 cushioned the supports for the Nifty. We took a trade on the long side and booked out with a profit of 25 points on that trade.
1) The Elder Ray readings : Bull Power reduces from -86 to -120 Bear Power rises from -166 to -205 indicating that despite the recovery, the Bulls have lost further grounds. For today, the Bulls need to overcome the levels of 6115 to regain their lost grounds whereas the Bears need to breach the levels of 5910 to maintain their downwards momentum.
2) The stochastics remain deeply into the oversold zone still.
3) The Nifty has yet again closed below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA(5975)
4) In the above chart, the volumes have increased with the Nifty staying stagnant, indicating that participants are indecisive on the direction. The MACD continues to point downwards with the histogram growing in the negative. The ADX is suggesting a rise in the Bearish momentum as of now. The Parabolic SAR continues to give out its Sell signal with the SL now brought down to 6262.
5) Considering the above, our trading plan for the day is as under.
a) Around 6040 we will open fresh short positions with a SL of 6060 and a target of 5970. We will add to these short positions only below 5940.
b) Around 5960 we will open fresh long positions with a SL of 5940 and a target of 6030. We will add to these long positions only above 6060.
Happy Trading !!!
Buy calls on MONSANTO GATI AUROPHARMA & TVSMOTOR and Sell call on KARURVYSYA hit their targets on 04 Feb 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) worked like a sweet dream.
ReplyDeleteGod knows why we waited for that 2 points difference in the morning.