Series expiry pegged on global cues and local news
As discussed yesterday, the Nifty opened with a good gap up but could not retain the gains and closed well below the opening mark. Clearly, the Nifty danced to the global cues. Today, with the RBI ready to announce its monetary review and policy going forward, amidst rising inflation and slowing growth, it could be another day of free fall unless the Bulls take the markets by the scruff of the neck.
1) The Elder Ray readings : Bull Power increased from +79 to +96 Bear Power reduced from -3 to +35. This should encourage the Bulls. However, the wall of worry is just around 50 points away.
2) The EMAs have been flattening out and the DMAs have been pointing downwards in an environment of range-bound consolidation.
3) The stochastics are in the overbought zone, and have remained so for the past 10 trading sessions. High time for a reversal suggested by that.
4) In the above chart, the MACD and the ADX are showing slowing down of the up-move. But are not supporting a down-move either.
5) The RBI action, and its meeting or not meeting the street expectations is going to be the decider for the next direction.
6) Considering the above, and considering the failure of the Nifty to sail across 5170, we have devised our trading plan as under
a) We will open fresh shorts near 5140 with a SL of 5180 and a target of 5080 5030. We will add to our short positions below 5000 only.
b) We will open fresh long positions in the next month series above 5190 with a SL of 5150 and a target of 5250 5320.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty opened with a good gap up but could not retain the gains and closed well below the opening mark. Clearly, the Nifty danced to the global cues. Today, with the RBI ready to announce its monetary review and policy going forward, amidst rising inflation and slowing growth, it could be another day of free fall unless the Bulls take the markets by the scruff of the neck.
1) The Elder Ray readings : Bull Power increased from +79 to +96 Bear Power reduced from -3 to +35. This should encourage the Bulls. However, the wall of worry is just around 50 points away.
2) The EMAs have been flattening out and the DMAs have been pointing downwards in an environment of range-bound consolidation.
3) The stochastics are in the overbought zone, and have remained so for the past 10 trading sessions. High time for a reversal suggested by that.
4) In the above chart, the MACD and the ADX are showing slowing down of the up-move. But are not supporting a down-move either.
5) The RBI action, and its meeting or not meeting the street expectations is going to be the decider for the next direction.
6) Considering the above, and considering the failure of the Nifty to sail across 5170, we have devised our trading plan as under
a) We will open fresh shorts near 5140 with a SL of 5180 and a target of 5080 5030. We will add to our short positions below 5000 only.
b) We will open fresh long positions in the next month series above 5190 with a SL of 5150 and a target of 5250 5320.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.