Nifty to consolidate between 4910 and 4980
As discussed yesterday, the Nifty opened with a hefty down gap of over 70 points and the bears were able to keep the Nifty below the opening of 4980 through out the trading session. The Nifty during the day, was subdued and showed a low of 4911 before staging a recovery and closing at 4947. Let us look at the chart readings as of day end yesterday.
1) The Elder Ray readings - Bull Power has reduced from +123 to -41 and the Bear Power has increased from +6 to -115 ( Negative Bear Power means bears getting stronger ). This suggests that bears now have a strangle hold over the Nifty and Bulls have just ended their romance with the Nifty. Remember, we said "Bearishness creeping in" a week ago?
2) The Stochastics have just come out of the oversold zone, suggesting a downward movement for the Nifty in forthcoming sessions.
3) All the rising EMAs have started to decline and the DMAs continue to fall. The ATR is stagnant at 112 suggesting a consolidation ahead.
4) In the above chart, MACD histogram is suggesting a topping out for the Nifty, and ADX is giving a Fresh Sell Signal.
5) Our view for the day is that given the late recovery in Europe & US markets a positive opening is on the cards for the Nifty, and the Bulls will try to cover the yesterday's gap between 5047 and 4986. Once that gap is covered, Bears might take over again and push down the nifty to 4950 yet again. So above & near 4980 we will look out for buying opportunities, during the day with a SL of 4950 and a target of 5020. Near 5020, we will be bearish with a SL of 5045 and a target of 4980. Looks like a great day of day trading, both ways. However, during the course of the day, if the bulls fail to get the Nifty over 4990, then the bears might test 4910 again and a below 4910 close can take the Nifty to 4820 in the coming sessions.
Happy trading
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty opened with a hefty down gap of over 70 points and the bears were able to keep the Nifty below the opening of 4980 through out the trading session. The Nifty during the day, was subdued and showed a low of 4911 before staging a recovery and closing at 4947. Let us look at the chart readings as of day end yesterday.
1) The Elder Ray readings - Bull Power has reduced from +123 to -41 and the Bear Power has increased from +6 to -115 ( Negative Bear Power means bears getting stronger ). This suggests that bears now have a strangle hold over the Nifty and Bulls have just ended their romance with the Nifty. Remember, we said "Bearishness creeping in" a week ago?
2) The Stochastics have just come out of the oversold zone, suggesting a downward movement for the Nifty in forthcoming sessions.
3) All the rising EMAs have started to decline and the DMAs continue to fall. The ATR is stagnant at 112 suggesting a consolidation ahead.
4) In the above chart, MACD histogram is suggesting a topping out for the Nifty, and ADX is giving a Fresh Sell Signal.
5) Our view for the day is that given the late recovery in Europe & US markets a positive opening is on the cards for the Nifty, and the Bulls will try to cover the yesterday's gap between 5047 and 4986. Once that gap is covered, Bears might take over again and push down the nifty to 4950 yet again. So above & near 4980 we will look out for buying opportunities, during the day with a SL of 4950 and a target of 5020. Near 5020, we will be bearish with a SL of 5045 and a target of 4980. Looks like a great day of day trading, both ways. However, during the course of the day, if the bulls fail to get the Nifty over 4990, then the bears might test 4910 again and a below 4910 close can take the Nifty to 4820 in the coming sessions.
Happy trading
For cash market recommendations see our Daily Pre Market calls on NSE
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