Nifty finds resistance at 6560 again and gives up. Short term correction may set in.
As discussed yesterday, Nifty's choppy consolidation continued, for most part of the trading session. The Nifty opened with a negative gap down of 25 points at 6492 and immediately within the first 5 minutes of trade went up by about 50 points to 6540. For the next hour the Nifty then traded sheepishly in a 10 point zone. The Nifty then, mocked a breakout, rising to 6561, and again traded in a 15 point zone for the next couple of hours. In the last hour of trade however, the Nifty found some serious selling and gave up all the gains to make a new intraday low of 6477 before closing at 6493. We took a trade on the short side and booked out with a profit of 45 points.
1) The Elder Ray readings : Bull Power reduces from +179 to +176 Bear Power rises from +120 to +91 indicating that the Bulls are retaining their grip over the Nifty as the Bears are trying to crawl back into contention. For today, the Bulls need to overcome the levels of 6580 to maintain their upwards momentum whereas the Bears need to breach the levels of 6405 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point upwards but the histogram continues to fall although remaining in the positive. The ADX is suggesting a reduction in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6429.
5) Considering the above, our trading plan for the day is as under.
a) Around 6455 we will open fresh long positions with a SL of 6435 and a target of 6525. We will add to these long positions only above 6565.
b) Around 6540 we will open fresh short positions with a SL of 6565 and a target of 6465. We will add to these short positions only below 6435.
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, Nifty's choppy consolidation continued, for most part of the trading session. The Nifty opened with a negative gap down of 25 points at 6492 and immediately within the first 5 minutes of trade went up by about 50 points to 6540. For the next hour the Nifty then traded sheepishly in a 10 point zone. The Nifty then, mocked a breakout, rising to 6561, and again traded in a 15 point zone for the next couple of hours. In the last hour of trade however, the Nifty found some serious selling and gave up all the gains to make a new intraday low of 6477 before closing at 6493. We took a trade on the short side and booked out with a profit of 45 points.
1) The Elder Ray readings : Bull Power reduces from +179 to +176 Bear Power rises from +120 to +91 indicating that the Bulls are retaining their grip over the Nifty as the Bears are trying to crawl back into contention. For today, the Bulls need to overcome the levels of 6580 to maintain their upwards momentum whereas the Bears need to breach the levels of 6405 to regain their lost grounds.
2) The stochastics continue to remain in the overbought zone.
3) The Nifty continues to close above all its key EMAs and also above all its key DMAs.
4) In the above chart the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD continues to point upwards but the histogram continues to fall although remaining in the positive. The ADX is suggesting a reduction in the Bullish momentum. The Parabolic SAR continues with its Buy signal with the SL now brought up to 6429.
5) Considering the above, our trading plan for the day is as under.
a) Around 6455 we will open fresh long positions with a SL of 6435 and a target of 6525. We will add to these long positions only above 6565.
b) Around 6540 we will open fresh short positions with a SL of 6565 and a target of 6465. We will add to these short positions only below 6435.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has opened right into our identified buying area. Will wait for the first few minutes to take a trade.
ReplyDeleteOpened fresh long intraday position at 6445 with SL of 6425
ReplyDeleteBooked out at 6460 with a 15 point profit and reversed position with SL of 6480
ReplyDeleteSL hit at 6480. Lost 20 points
ReplyDeleteSIR FOR LEARNING PURPOSE
ReplyDeletewhy did we reversed the trade
and also the shorts were giving some 20 points at one time...were lower targets expected
how is nifty range calculated can u share the math behind it ....
@ shivam
ReplyDeleteWeekyl trend is positive. Nifty is getting support @ 6440 for 4 hours. see the hourly closing. When weekly trend is positive, one has to be careful with the shorts. I shorted @ 6460 covered and went long and booked @ 6510.
Tueday we may have a fall and we need to see the new support @ 6440 holds