Nifty at the lower end of its current trading range
As discussed yesterday, the Nifty, in the morning session, made an attempt to cross 4890. But once this attempt failed, and Nifty broke 4820, the markets witnessed a free fall and the recent low of 4720 was tested again before closing at 4772. Let us do some analysis to find what could emerge out today.
1) The Elder Ray readings : Bull Power increased from -82 to -65 Bear Power increased from -137 to -206. This indicates that the Bears have gained control of the Nifty, and any rise will be quickly sold off.
2) The near term 7DMA has started flattening out. However, the 13EMA has lost around 10% in the last 2 sessions. This indicates that there will be attempts for the Nifty to rise in the next couple of sessions, but these attempts may not succeed to keep the Nifty afloat.
3) The fast stochastics have entered the oversold zone. However, the slow stochastics are still above the oversold zone. This indicates, that there is some more room for a downward movement on the Nifty.
4) In the above chart, the MACD has started falling again. The ADX is showing a sustainable bearish move on the rise. However, the Nifty is touching the lower Bollinger Band.
5) The level of 4785 is 38.2% of the Nifty move from 2253 on 27 Oct 2008 (almost 3 years ago) to 6336 on 08 Nov 2010. Looking at the price and time cycle, the Nifty can come down near to 4300 within a very short period.
6) Considering all the above, our trading plan for the day is
a) We will look out for opening short positions at higher levels of 4800 to 4820 with a SL of 4860 and a target of 4720. We will add to our short positions only below 4700 with a target of 4620.
b) We will look for opening long positions near 4710 with a SL of 4685 and a target of 4800. We will add to our positions only above 4840.
Today's range for the Nifty - 4700 4820
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty, in the morning session, made an attempt to cross 4890. But once this attempt failed, and Nifty broke 4820, the markets witnessed a free fall and the recent low of 4720 was tested again before closing at 4772. Let us do some analysis to find what could emerge out today.
1) The Elder Ray readings : Bull Power increased from -82 to -65 Bear Power increased from -137 to -206. This indicates that the Bears have gained control of the Nifty, and any rise will be quickly sold off.
2) The near term 7DMA has started flattening out. However, the 13EMA has lost around 10% in the last 2 sessions. This indicates that there will be attempts for the Nifty to rise in the next couple of sessions, but these attempts may not succeed to keep the Nifty afloat.
3) The fast stochastics have entered the oversold zone. However, the slow stochastics are still above the oversold zone. This indicates, that there is some more room for a downward movement on the Nifty.
4) In the above chart, the MACD has started falling again. The ADX is showing a sustainable bearish move on the rise. However, the Nifty is touching the lower Bollinger Band.
5) The level of 4785 is 38.2% of the Nifty move from 2253 on 27 Oct 2008 (almost 3 years ago) to 6336 on 08 Nov 2010. Looking at the price and time cycle, the Nifty can come down near to 4300 within a very short period.
6) Considering all the above, our trading plan for the day is
a) We will look out for opening short positions at higher levels of 4800 to 4820 with a SL of 4860 and a target of 4720. We will add to our short positions only below 4700 with a target of 4620.
b) We will look for opening long positions near 4710 with a SL of 4685 and a target of 4800. We will add to our positions only above 4840.
Today's range for the Nifty - 4700 4820
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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