Expect Nifty to drag in a nervous range
As discussed a couple of days ago, a Relief rally did happen, but it turned out to be just that, a relief rally and nothing more. Today, given the global cues, we expect the Nifty to open lower and trade in the red zone for most part of the day.
1) The Elder Ray readings - Bull Power increased from -4 to +25 whereas the Bear Power reduced slightly from -82 to -62. Indicates that the bulls have just resurfaced while the bears have not yet given up.
2) The moving averages continue to point downwards, suggesting that the downtrend would resume soon.
3) The stochastics are in no man's land are suggesting some consolidation in a narrow range.
4) In the above chart, the MACD and the ADX are both suggesting indecision as of now.
5) Considering the above, and also keeping in view that today is the last day of the current series, we will not have any positions on the Nifty for most part of the day.
However,
a) If the Nifty crosses 4980, we will open fresh shorts for the next month series, with a SL of 5030 and a target of 4820. We will add to our shorts below 4990.
b) if the Nifty goes to 4820, we will try a long position for the next month series with a SL of 4780 and a target of 4890.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed a couple of days ago, a Relief rally did happen, but it turned out to be just that, a relief rally and nothing more. Today, given the global cues, we expect the Nifty to open lower and trade in the red zone for most part of the day.
1) The Elder Ray readings - Bull Power increased from -4 to +25 whereas the Bear Power reduced slightly from -82 to -62. Indicates that the bulls have just resurfaced while the bears have not yet given up.
2) The moving averages continue to point downwards, suggesting that the downtrend would resume soon.
3) The stochastics are in no man's land are suggesting some consolidation in a narrow range.
4) In the above chart, the MACD and the ADX are both suggesting indecision as of now.
5) Considering the above, and also keeping in view that today is the last day of the current series, we will not have any positions on the Nifty for most part of the day.
However,
a) If the Nifty crosses 4980, we will open fresh shorts for the next month series, with a SL of 5030 and a target of 4820. We will add to our shorts below 4990.
b) if the Nifty goes to 4820, we will try a long position for the next month series with a SL of 4780 and a target of 4890.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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