Trend finding continues
As discussed yesterday, the Nifty opened on a positive note above 4980 and found resistance at 5030 before crashing to 4910 and closing near 4940. We could not have been more accurate in our predictions. Clearly, 4900 and 5050 are the defined challenges for Bears and Bulls respectively as of now. The trend however, is favoring the Bears.
1) The current Elder Ray readings : The Bull Power has resurfaced from -41 to +15. Bear power also has reduced slightly from -115 to -103. This suggests that although the Bulls have tried, the Bears are not yet leaving their stranglehold on the Nifty.
2) The stochastics continue to point downwards but are some distance away from the oversold area, suggesting there is room for downward trend to continue.
3) All the moving averages, simple as well as exponential, are moving downwards. The NH- NL still stands in the negative.
4) In the above chart, the MACD histogram points to a downward direction, and the ADX is suggesting indecision, with all three values at the same point.
5) Considering all the above, our observation for the day is that the Nifty might open Flat and the Bulls will try for 4980 5020 once again and the Bears will try for 4900. It might turn out to be a day of calm before the storm that seems to be brewing on the RBI policy announcement day. It would be a day of small profits and ideally, one should stay out of the Nifty for the day. If you have positions hold on to them for the day, and let the trend decide the future.
6) We will open new shorts at 5000 with a SL of 5050 and a target of 4900/4820. Add to short positions below 4890. Above 5050 we will be long till 5150
7) We will open new longs around 4910 with a SL of 4880 and a target of 4980/5030. Add to long positions above 4990. Below 4880 we will be short till 4820
Happy Trading
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty opened on a positive note above 4980 and found resistance at 5030 before crashing to 4910 and closing near 4940. We could not have been more accurate in our predictions. Clearly, 4900 and 5050 are the defined challenges for Bears and Bulls respectively as of now. The trend however, is favoring the Bears.
1) The current Elder Ray readings : The Bull Power has resurfaced from -41 to +15. Bear power also has reduced slightly from -115 to -103. This suggests that although the Bulls have tried, the Bears are not yet leaving their stranglehold on the Nifty.
2) The stochastics continue to point downwards but are some distance away from the oversold area, suggesting there is room for downward trend to continue.
3) All the moving averages, simple as well as exponential, are moving downwards. The NH- NL still stands in the negative.
4) In the above chart, the MACD histogram points to a downward direction, and the ADX is suggesting indecision, with all three values at the same point.
5) Considering all the above, our observation for the day is that the Nifty might open Flat and the Bulls will try for 4980 5020 once again and the Bears will try for 4900. It might turn out to be a day of calm before the storm that seems to be brewing on the RBI policy announcement day. It would be a day of small profits and ideally, one should stay out of the Nifty for the day. If you have positions hold on to them for the day, and let the trend decide the future.
6) We will open new shorts at 5000 with a SL of 5050 and a target of 4900/4820. Add to short positions below 4890. Above 5050 we will be long till 5150
7) We will open new longs around 4910 with a SL of 4880 and a target of 4980/5030. Add to long positions above 4990. Below 4880 we will be short till 4820
Happy Trading
For cash market recommendations see our Daily Pre Market calls on NSE
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