Volatile expiry to the September series expected
As discussed yesterday, we saw a relief rally that extended till the end of session. The Bulls took control of the session right from the word go, and never did let off. However, they stopped just short of 4990 the crucial 13 EMA level. Today, being a crucial trading session, a in-depth technical analysis is imperative.
1) The Elder Ray readings - Bull Power increased from -110 to -4 Bear Power reduced from -231 to -82. This indicates that although Bulls have regained some of their lost power, they are still not above the surface, and the Bears are down but not out, and both can drag the Nifty to a large extent.
2) The moving averages are still pointing downwards, indicating that we are still in a medium term bearish trend. The Nifty yesterday stopped just below its 13EMA.
3) The stochastics are in neutral territory, and can go either ways, suggesting confusion on further direction. The ATR has gained 4 points in a day and is now at 114, indicating increased volatility.
4) In the above chart, the MACD as well as the ADX is indicating indecision on part of both the Bulls and Bears. However, the ADX is suggesting a strong move either ways cannot be ruled out.
5) Even the global cues are mixed and lack any sense of direction.
6) Considering all the above, it would be better not to set any targets for the Nifty for the day. As a better trading strategy, we will buy 5100 Sept call and 4900 Sept put today after Nifty has moved about 60 points in either direction from 4970. This will limit our loss possibility and offer a handsome profiting opportunity.
7) Later in the day, if the Nifty is still below 5000 but above 4950, we might consider opening a new short on the Nifty Oct series.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw a relief rally that extended till the end of session. The Bulls took control of the session right from the word go, and never did let off. However, they stopped just short of 4990 the crucial 13 EMA level. Today, being a crucial trading session, a in-depth technical analysis is imperative.
1) The Elder Ray readings - Bull Power increased from -110 to -4 Bear Power reduced from -231 to -82. This indicates that although Bulls have regained some of their lost power, they are still not above the surface, and the Bears are down but not out, and both can drag the Nifty to a large extent.
2) The moving averages are still pointing downwards, indicating that we are still in a medium term bearish trend. The Nifty yesterday stopped just below its 13EMA.
3) The stochastics are in neutral territory, and can go either ways, suggesting confusion on further direction. The ATR has gained 4 points in a day and is now at 114, indicating increased volatility.
4) In the above chart, the MACD as well as the ADX is indicating indecision on part of both the Bulls and Bears. However, the ADX is suggesting a strong move either ways cannot be ruled out.
5) Even the global cues are mixed and lack any sense of direction.
6) Considering all the above, it would be better not to set any targets for the Nifty for the day. As a better trading strategy, we will buy 5100 Sept call and 4900 Sept put today after Nifty has moved about 60 points in either direction from 4970. This will limit our loss possibility and offer a handsome profiting opportunity.
7) Later in the day, if the Nifty is still below 5000 but above 4950, we might consider opening a new short on the Nifty Oct series.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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