Nifty does a higher low and higher high on daily charts. Yet technicals stay bearish.
As discussed yesterday, we saw the Nifty recover yet stay bearish. The Nifty opened flat to positive, but closed below 6000 for the first three hours making a low of 5962, where it found some support and then it began to cross the 6000 mark. By EOD the Nifty had made a high of 6028 before closing at 6022. We had a trading plan to go long at 5960 for a target of 6030. The Nifty avoided this plan by two points on both the ends. We missed to take plunge into this trade.
1) The Elder Ray readings : Bull Power rises from -120 to -93 Bear Power reduces from -205 to -159 indicating that Bears are still holding the control on the Nifty and that the Bulls have still some distance to cover. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The stochastics stay in the oversold zone now for 8 consecutive sessions asserting the Bearish control.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and its 100DMA. However, it is above its 200DMA(5976)
4) In the above chart, the volumes have reduced with the rise in the Nifty indicating that the rise may get halted soon. The MACD continues to point downwards with the histogram stagnating but staying in the negative. The ADX is showing some loss of momentum for the Bears but is still favoring the Bears. The Parabolic SAR continues with its sell signal with the SL now brought down to 6229.
5) Considering the above, our trading plan for the day is as under.
a) Around 6060 we will open fresh short positions with a SL of 6080 and a target of 5990. We will add to these short positions only below 5960.
b) Around 5980 we will open fresh long positions with a SL of 5960 and a target of 6040. We will add to these long positions only above 6080.
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, we saw the Nifty recover yet stay bearish. The Nifty opened flat to positive, but closed below 6000 for the first three hours making a low of 5962, where it found some support and then it began to cross the 6000 mark. By EOD the Nifty had made a high of 6028 before closing at 6022. We had a trading plan to go long at 5960 for a target of 6030. The Nifty avoided this plan by two points on both the ends. We missed to take plunge into this trade.
1) The Elder Ray readings : Bull Power rises from -120 to -93 Bear Power reduces from -205 to -159 indicating that Bears are still holding the control on the Nifty and that the Bulls have still some distance to cover. For today, the Bulls need to overcome the levels of 6105 to regain their lost grounds whereas the Bears need to breach the levels of 5945 to maintain their downwards momentum.
2) The stochastics stay in the oversold zone now for 8 consecutive sessions asserting the Bearish control.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and its 100DMA. However, it is above its 200DMA(5976)
4) In the above chart, the volumes have reduced with the rise in the Nifty indicating that the rise may get halted soon. The MACD continues to point downwards with the histogram stagnating but staying in the negative. The ADX is showing some loss of momentum for the Bears but is still favoring the Bears. The Parabolic SAR continues with its sell signal with the SL now brought down to 6229.
5) Considering the above, our trading plan for the day is as under.
a) Around 6060 we will open fresh short positions with a SL of 6080 and a target of 5990. We will add to these short positions only below 5960.
b) Around 5980 we will open fresh long positions with a SL of 5960 and a target of 6040. We will add to these long positions only above 6080.
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 at 5970 with SL of 5955
ReplyDeleteBooked 25 points profit at 5995.
ReplyDeleteNow waiting to see if day lows get breached.
Again trading plan(b) works like a sweet dream.
ReplyDelete