Nifty may try a bounce back today.
As discussed in our last post, the Nifty traded in a narrow range for major part of the trading session on Wednesday, before the bearishness crept in and took it straight to 5212 where it found some support, before closing at 5221. Today, given the global cues, the Nifty is likely to have a subdued opening, but may attract some buying at lower levels. Although, this buying may not be aggressive enough to make a skyrocketing rise, it could be strong enough to prevent any vertical fall in the Nifty.
1) The Elder Ray readings : The Bull Power rises from +85 to +98, the Bear Power also rises from +33 to -7. This indicates that although the Bears have regained their lost territory, the Bulls have also not given up yet. In such a tug of war, either the Nifty can trade in a dull range, or the volatility may shoot to the sky. Traders need to be prepared for either case.
2) The near term EMAs have started turning downwards, however the 50 DMA is still pointing upwards.
3) The stochastics have started falling, but are far from the oversold zone, indicating there is still some more room for a fall in the Nifty in the near future.
4) In the above chart, the EMAs are stacked up positively, and suggest that the current fall in just a pull back that should be used to look out for buying opportunities. The volumes in the current fall have risen and are supportive of a further fall. The MACD histogram is falling, and the MACD is touching overbought levels. The ADX is suggesting indecision in both the up-move and the down-move.
5) Given the global cues, the Nifty is likely to have a subdued opening. There is this level of 5175 which had acted as support over past few years, and had acted as resistance for the past few months. This could turn out to be a major support now.
6) Based upon this our trading plan is as under,
a) Around 5175 we will open long positions, with a SL of 5145 and a target of 5250. We will add to these long positions only above 5275.
b) Around 5235 we will open short positions, with a SL of 5255 and a target of 5180. We will add to these short positions only below 5130.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our last post, the Nifty traded in a narrow range for major part of the trading session on Wednesday, before the bearishness crept in and took it straight to 5212 where it found some support, before closing at 5221. Today, given the global cues, the Nifty is likely to have a subdued opening, but may attract some buying at lower levels. Although, this buying may not be aggressive enough to make a skyrocketing rise, it could be strong enough to prevent any vertical fall in the Nifty.
1) The Elder Ray readings : The Bull Power rises from +85 to +98, the Bear Power also rises from +33 to -7. This indicates that although the Bears have regained their lost territory, the Bulls have also not given up yet. In such a tug of war, either the Nifty can trade in a dull range, or the volatility may shoot to the sky. Traders need to be prepared for either case.
2) The near term EMAs have started turning downwards, however the 50 DMA is still pointing upwards.
3) The stochastics have started falling, but are far from the oversold zone, indicating there is still some more room for a fall in the Nifty in the near future.
4) In the above chart, the EMAs are stacked up positively, and suggest that the current fall in just a pull back that should be used to look out for buying opportunities. The volumes in the current fall have risen and are supportive of a further fall. The MACD histogram is falling, and the MACD is touching overbought levels. The ADX is suggesting indecision in both the up-move and the down-move.
5) Given the global cues, the Nifty is likely to have a subdued opening. There is this level of 5175 which had acted as support over past few years, and had acted as resistance for the past few months. This could turn out to be a major support now.
6) Based upon this our trading plan is as under,
a) Around 5175 we will open long positions, with a SL of 5145 and a target of 5250. We will add to these long positions only above 5275.
b) Around 5235 we will open short positions, with a SL of 5255 and a target of 5180. We will add to these short positions only below 5130.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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