Nifty may open gap up but may find difficult to retain the gains
As discussed on Friday, the Nifty continued with its downturn exhibiting range-bound volatility. After opening with a up gap at 5107, the Nifty could not cross the wall of worry and started its downtrend again from 5121 to 5038 before closing at 5050. Today, given the global cues, the Nifty is likely to open with a nice gap up of at least 70 to 80 points. But again the wall of worry will become a major hindrance, and we could see range-bound volatility yet again.
1) The Elder Ray readings : The Bull Power increased from +59 to +79. The Bear Power reduced from -6 to -3. Again, both the Bulls and the Bears are safe in their respective zones, indicating a tug of war ahead, with the immediate trend supporting the Bulls and the overall trend in favor of the Bears.
2) The EMAs are flattening out and the DMAs are continuing to point downwards, indicating a restart of the downtrend just around the corner.
3) The stochastics are seeming to get out of the overbought zone, indicating a start of a fresh downward movement on the Nifty.
4) In the above chart, both the volumes and the MACD are falling. The ADX is showing indecision, and the Bollinger Bands show a immediate resistance around 5200.
5) Based on the above, and given that the Nifty will yet again open with a up gap post a downfall, our trading plan is based on the opening mark on the Nifty.
a) Until the Nifty is not able to cross, 5170 or the opening mark, whichever is higher, we will look out for opening fresh shorts with a target of 5080 5030 and a SL of 5190.
b) We will avoid building fresh long positions in the current series.
c) If the Nifty breaks 5190 decisively, we will open fresh longs in the next month series with a SL of 5160 and a target of 5230 5320.
Happy Trading !!!
Happy Diwali !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty continued with its downturn exhibiting range-bound volatility. After opening with a up gap at 5107, the Nifty could not cross the wall of worry and started its downtrend again from 5121 to 5038 before closing at 5050. Today, given the global cues, the Nifty is likely to open with a nice gap up of at least 70 to 80 points. But again the wall of worry will become a major hindrance, and we could see range-bound volatility yet again.
1) The Elder Ray readings : The Bull Power increased from +59 to +79. The Bear Power reduced from -6 to -3. Again, both the Bulls and the Bears are safe in their respective zones, indicating a tug of war ahead, with the immediate trend supporting the Bulls and the overall trend in favor of the Bears.
2) The EMAs are flattening out and the DMAs are continuing to point downwards, indicating a restart of the downtrend just around the corner.
3) The stochastics are seeming to get out of the overbought zone, indicating a start of a fresh downward movement on the Nifty.
4) In the above chart, both the volumes and the MACD are falling. The ADX is showing indecision, and the Bollinger Bands show a immediate resistance around 5200.
5) Based on the above, and given that the Nifty will yet again open with a up gap post a downfall, our trading plan is based on the opening mark on the Nifty.
a) Until the Nifty is not able to cross, 5170 or the opening mark, whichever is higher, we will look out for opening fresh shorts with a target of 5080 5030 and a SL of 5190.
b) We will avoid building fresh long positions in the current series.
c) If the Nifty breaks 5190 decisively, we will open fresh longs in the next month series with a SL of 5160 and a target of 5230 5320.
Happy Trading !!!
Happy Diwali !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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