Bearishness may slow down a bit, but Nifty may stay down yet.
As discussed yesterday, the Nifty responded well to the freshly generated sell signal, and even after a positive opening, Nifty found resistance at 5230 and nosedived to 5140 by the end of the trading session, before closing at 5148. Today, given the global cues, the Nifty is likely to have a subdued opening.
1) The Elder Ray readings : Bull Power increases from -14 to +26 Bear Power reduces from -70 to -63. This indicates that there might be a slowdown in the momentum of the fall as bears take a breath before regrouping, however, it will be a major task for the Bulls to take the Nifty over yesterday's highs.
2) The EMAs are still pointing downwards, and they are about to generate their own sell signal. The 100 and 200 DMAs continue to point downwards. The 50 DMA is sloping upwards, and could prove to be a support for today at 5066.
3) The stochastics too are pointing downwards and are not yet in the overbought zone, indicating that there is still some more room for the Nifty to move downwards.
4) In the chart above, the volumes have decreased in yesterday's fall. The ADX is also indicating a loss of momentum in the fall. However, the MACD is confirming yesterday's sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5080 we will open fresh long positions with a SL of 5055 and a target of 5150. We will add to these long positions only above 5180.
b) Around 5160 we will open fresh short positions with a SL of 5185 and a target of 5070. We will add to these short positions only below 5050.
c) We will wait patiently for markets to reach our start prices. We will trail the stop loss to preserve our profits, as volatility may increase today.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty responded well to the freshly generated sell signal, and even after a positive opening, Nifty found resistance at 5230 and nosedived to 5140 by the end of the trading session, before closing at 5148. Today, given the global cues, the Nifty is likely to have a subdued opening.
1) The Elder Ray readings : Bull Power increases from -14 to +26 Bear Power reduces from -70 to -63. This indicates that there might be a slowdown in the momentum of the fall as bears take a breath before regrouping, however, it will be a major task for the Bulls to take the Nifty over yesterday's highs.
2) The EMAs are still pointing downwards, and they are about to generate their own sell signal. The 100 and 200 DMAs continue to point downwards. The 50 DMA is sloping upwards, and could prove to be a support for today at 5066.
3) The stochastics too are pointing downwards and are not yet in the overbought zone, indicating that there is still some more room for the Nifty to move downwards.
4) In the chart above, the volumes have decreased in yesterday's fall. The ADX is also indicating a loss of momentum in the fall. However, the MACD is confirming yesterday's sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5080 we will open fresh long positions with a SL of 5055 and a target of 5150. We will add to these long positions only above 5180.
b) Around 5160 we will open fresh short positions with a SL of 5185 and a target of 5070. We will add to these short positions only below 5050.
c) We will wait patiently for markets to reach our start prices. We will trail the stop loss to preserve our profits, as volatility may increase today.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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