With 3 days of higher high and higher low, the Bear grip is slipping. Crucial EOD today.
As discussed yesterday, the Bearish recovery continued on the Nifty. The Nifty opened positive at 6028 and then made a quick high of 6048 in the first hour of trade itself. However, the Nifty saw a thud of a fall and lost 80 points in the second hour of trade and made a low of 5965. From there the Nifty recovered slowly and steadily and closed at 6036 with a gain of 14 points over previous closing. We took a trade on the long side and booked a profit of 25 points on that trade.
1) The Elder Ray readings : Bull Power rises from -93 to -61 Bear Power reduces from -159 to -144 indicating that the Bears are still holding the control on the Nifty but the Bulls are now within striking distance of regain their footing. For today, the Bulls need to overcome the levels of 6100 to regain their lost grounds whereas the Bears need to breach the levels of 5950 to maintain their downwards momentum.
2) The stochastics are still in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA.
4) In the above chart the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is still pointing downwards but the histogram is reducing in the negative zone. The ADX is suggesting a slowdown for the Bears, but is still favoring them. The Parabolic SAR continues to give out its sell signal with the SL now brought down to 6199.
5) Considering the above our trading plan for the day is as under.
a) Around 6085 we will open fresh short positions with a SL of 6105 and a target of 6000. We will add to these short positions only below 5975.
b) Around 5990 we will open fresh long positions with a SL of 5975 and a target of 6075. We will add to these long positions only above 6105.
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 Bearish recovery continued on the Nifty. The Nifty opened positive at 6028 and then made a quick high of 6048 in the first hour of trade itself. However, the Nifty saw a thud of a fall and lost 80 points in the second hour of trade and made a low of 5965. From there the Nifty recovered slowly and steadily and closed at 6036 with a gain of 14 points over previous closing. We took a trade on the long side and booked a profit of 25 points on that trade.
1) The Elder Ray readings : Bull Power rises from -93 to -61 Bear Power reduces from -159 to -144 indicating that the Bears are still holding the control on the Nifty but the Bulls are now within striking distance of regain their footing. For today, the Bulls need to overcome the levels of 6100 to regain their lost grounds whereas the Bears need to breach the levels of 5950 to maintain their downwards momentum.
2) The stochastics are still in the oversold zone.
3) The Nifty continues to close below all its key EMAs and also below its 50DMA and 100DMA. However, it has closed above its 200DMA.
4) In the above chart the volumes have increased with the rise in the Nifty indicating that the up move may continue. The MACD is still pointing downwards but the histogram is reducing in the negative zone. The ADX is suggesting a slowdown for the Bears, but is still favoring them. The Parabolic SAR continues to give out its sell signal with the SL now brought down to 6199.
5) Considering the above our trading plan for the day is as under.
a) Around 6085 we will open fresh short positions with a SL of 6105 and a target of 6000. We will add to these short positions only below 5975.
b) Around 5990 we will open fresh long positions with a SL of 5975 and a target of 6075. We will add to these long positions only above 6105.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.