Nifty dancing to global tunes amidst local turmoil
As discussed yesterday, the wall of worry is still a big roadblock in the up-move for the Nifty. Yesterday, after a subdued opening and a even subdued trading session, the Nifty recovered in the second half to close just around its opening mark. Yet again, there was seen a lack of follow up on the part of the Bears, allowing the Bulls to recover much of the lost ground. The Nifty is still range bound within 4950 and 5150.
1) The Elder Ray readings : Bull Power reduces from +117 to +59 Bear Power increases from +44 to -6. Again, both the Bulls and the Bears are within their comfort zone, indicating a tug of war which will keep the Nifty range-bound with a good amount of volatility. Identifying a trend will become more and more difficult in such conditions.
2) The EMAs are slowing down in their up-move but the DMAs continue to point downwards.
3) Keeping the expiry of the current series in mind, the Nifty is expected to be trend-less for today.
4) In the above chart, the volumes have been decreasing, the MACD is also showing a bearish divergence, and the ADX is indicating a trend-less market.
5) The stochastics are in the overbought zone now.
6) Looking at the above, we have a trading plan for the Nifty as under
a) Around 5120 we will open short positions with a SL of 5150 and a target of 5050. We will add to these short positions only below 5010.
b) We will avoid opening fresh long positions in the current series as of today. However, above 5150, we will open fresh longs for the next month series with a SL of 5120 and a target of 5220 5320.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the wall of worry is still a big roadblock in the up-move for the Nifty. Yesterday, after a subdued opening and a even subdued trading session, the Nifty recovered in the second half to close just around its opening mark. Yet again, there was seen a lack of follow up on the part of the Bears, allowing the Bulls to recover much of the lost ground. The Nifty is still range bound within 4950 and 5150.
1) The Elder Ray readings : Bull Power reduces from +117 to +59 Bear Power increases from +44 to -6. Again, both the Bulls and the Bears are within their comfort zone, indicating a tug of war which will keep the Nifty range-bound with a good amount of volatility. Identifying a trend will become more and more difficult in such conditions.
2) The EMAs are slowing down in their up-move but the DMAs continue to point downwards.
3) Keeping the expiry of the current series in mind, the Nifty is expected to be trend-less for today.
4) In the above chart, the volumes have been decreasing, the MACD is also showing a bearish divergence, and the ADX is indicating a trend-less market.
5) The stochastics are in the overbought zone now.
6) Looking at the above, we have a trading plan for the Nifty as under
a) Around 5120 we will open short positions with a SL of 5150 and a target of 5050. We will add to these short positions only below 5010.
b) We will avoid opening fresh long positions in the current series as of today. However, above 5150, we will open fresh longs for the next month series with a SL of 5120 and a target of 5220 5320.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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