Nifty attempts a bearish evening star, but stays neutral groping for further direction.
As discussed yesterday, the volumes were lacking in the up move during past few trading sessions. This we considered as a lack of conviction amongst the Bulls. The Nifty opened with a negative gap down of 26 points and then traded within a confined range of 25 points between 6129 and 6105 for most of the trading session, never sustaining above 6125 for long. In the last hour of trade though, the Nifty breached the supports of 6105 and slid down to 6087 before closing at 6091.
1) The Elder Ray readings : Bull Power reduces from +69 to +38 Bear Power rises from +35 to -5 indicating that both the Bulls and the Bears are in their respective zones. For today, the Bulls need to overcome the levels of 6130 to maintain their upwards momentum whereas the Bears need to breach the levels of 6085 to maintain their downwards momentum.
2) The stochastics are pointing towards coming down from the overbought zone.
3) The Nifty has closed at its 8EMA and 13EMA but is below its 21EMA. The Nifty is below its 50DMA and 100DMA but is above its 200DMA.
4) In the above chart, the volumes have picked up with the fall in the Nifty indicating that the fall may continue. The MACD is pointing flat with the histogram being in positive but shrinking. The ADX is suggesting a fall in the Bullish momentum and a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 5947.
5) Considering the above, our trading plan for the day is as under.
a) Around 6130 we will open fresh short positions with a SL of 6150 and a target of 6080. We will add to these short positions only below 6040.
b) Around 6060 we will open fresh long positions with a SL of 6040 and a target of 6120. We will add to these long positions only above 6150.
Happy Trading !!!
Buy call on CARERATING & Sell call on ASIANPAINT hit their targets on 20 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, the volumes were lacking in the up move during past few trading sessions. This we considered as a lack of conviction amongst the Bulls. The Nifty opened with a negative gap down of 26 points and then traded within a confined range of 25 points between 6129 and 6105 for most of the trading session, never sustaining above 6125 for long. In the last hour of trade though, the Nifty breached the supports of 6105 and slid down to 6087 before closing at 6091.
1) The Elder Ray readings : Bull Power reduces from +69 to +38 Bear Power rises from +35 to -5 indicating that both the Bulls and the Bears are in their respective zones. For today, the Bulls need to overcome the levels of 6130 to maintain their upwards momentum whereas the Bears need to breach the levels of 6085 to maintain their downwards momentum.
2) The stochastics are pointing towards coming down from the overbought zone.
3) The Nifty has closed at its 8EMA and 13EMA but is below its 21EMA. The Nifty is below its 50DMA and 100DMA but is above its 200DMA.
4) In the above chart, the volumes have picked up with the fall in the Nifty indicating that the fall may continue. The MACD is pointing flat with the histogram being in positive but shrinking. The ADX is suggesting a fall in the Bullish momentum and a rise in the Bearish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 5947.
5) Considering the above, our trading plan for the day is as under.
a) Around 6130 we will open fresh short positions with a SL of 6150 and a target of 6080. We will add to these short positions only below 6040.
b) Around 6060 we will open fresh long positions with a SL of 6040 and a target of 6120. We will add to these long positions only above 6150.
Happy Trading !!!
Buy call on CARERATING & Sell call on ASIANPAINT hit their targets on 20 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 (a) got triggered and have opened fresh short position at 6130 with SL of 6150
ReplyDeleteSL hit at 6150 booked out with loss of 20 points
ReplyDelete