The Nifty pull back closes below previous day's low. May produce a down move.
As discussed yesterday, the Bulls maintained their stranglehold on the Nifty, but for just the morning hours of trade, as the Nifty kept upbeat but was unable to overcome the previous day's high of 6283 and the up move got thwarted at 6278 itself. From thereon, the Nifty came tumbling down to our identified support zone of 6245 6225 and found some temporary support. But once the Bears breached 6225, the Nifty went down till 6212 before closing at 6221. We lost 20 points in a long trade.
1) The Elder Ray readings : Bull Power reduces from +122 to +108 Bear Power rises from +67 to +43, indicating that the Bulls are still in the driver's seat and that the Bears have got to do much more here. For today, the Bulls need to overcome the levels of 6285 to maintain their upwards momentum whereas the Bears need to breach the levels of 6170 to regain their lost grounds.
2) The stochastics are looking to come down from the overbought zone.
3) The Nifty has still closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues its upward journey, but the histogram is reducing in the positive territory, indicating a pause in the upwards momentum. The ADX is also 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 6060.
5) Considering the above, our trading plan for the day is as under.
a) Around 6190 we will open fresh long positions with a SL of 6170 and a target of 6240. We will add to these long positions only above 6270.
b) Around 6250 we will open fresh short positions with a SL of 6270 and a target of 6195. We will add to these short positions only below 6170.
Happy Trading !!!
Buy calls on ASTRAZEN & TATASPONGE while Sell calls on ABIRLANUVO & NESTLEIND hit their targets on 03 Mar 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 Bulls maintained their stranglehold on the Nifty, but for just the morning hours of trade, as the Nifty kept upbeat but was unable to overcome the previous day's high of 6283 and the up move got thwarted at 6278 itself. From thereon, the Nifty came tumbling down to our identified support zone of 6245 6225 and found some temporary support. But once the Bears breached 6225, the Nifty went down till 6212 before closing at 6221. We lost 20 points in a long trade.
1) The Elder Ray readings : Bull Power reduces from +122 to +108 Bear Power rises from +67 to +43, indicating that the Bulls are still in the driver's seat and that the Bears have got to do much more here. For today, the Bulls need to overcome the levels of 6285 to maintain their upwards momentum whereas the Bears need to breach the levels of 6170 to regain their lost grounds.
2) The stochastics are looking to come down from the overbought zone.
3) The Nifty has still closed above all its key EMAs and also above all its key DMAs.
4) In the above chart, the volumes have decreased with the fall in the Nifty indicating that the fall may get arrested. The MACD continues its upward journey, but the histogram is reducing in the positive territory, indicating a pause in the upwards momentum. The ADX is also 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 6060.
5) Considering the above, our trading plan for the day is as under.
a) Around 6190 we will open fresh long positions with a SL of 6170 and a target of 6240. We will add to these long positions only above 6270.
b) Around 6250 we will open fresh short positions with a SL of 6270 and a target of 6195. We will add to these short positions only below 6170.
Happy Trading !!!
Buy calls on ASTRAZEN & TATASPONGE while Sell calls on ABIRLANUVO & NESTLEIND hit their targets on 03 Mar 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) has triggered and have opened fresh short positions at 6252 with SL of 6270
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