Nifty to trade in a range with negative bias
As discussed yesterday, the Nifty opened almost flat, and tried at least 3 times during the day to rally and come in the positive, but every rally got sold off and the Nifty closed in the negative at 5030. Today, again, given the global cues, the Nifty is likely to open lower.
1) The Elder Ray readings : Bull Power reduces from -25 to -97 Bear Power rises from -131 to -173. This indicates, that the Bears are getting their grip stronger, while the Bulls are getting weak as they are now well into the negative territory.
2) The EMAs are pointing downwards. Yesterday, the Nifty has traded and closed below 5070 the 50 DMA. Now this can start to act as a major resistance to any up-move. In fact, in yesterday's trade, the EMAs have generated their own independent sell signal.
3) The stochastics are now well into the oversold zone, indicating that markets support is just round the corner. Yet another signal indicating consolidation ahead.
4) In the above chart, the volumes continue to be constant with falling prices, indicating continuation of the downtrend. The MACD and the ADX are also confirming rise in momentum of the down trend. However, the Bollinger Bands suggest that there is support just near yesterday's bottom.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 4970, we will open fresh long positions with a SL of 4945 and a target of 5040. We will add to these positions only above 5080.
b) Around 5050 we will open fresh short positions with a SL of 5075 and a target of 4990. We will add to these positions only below 4940.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty opened almost flat, and tried at least 3 times during the day to rally and come in the positive, but every rally got sold off and the Nifty closed in the negative at 5030. Today, again, given the global cues, the Nifty is likely to open lower.
1) The Elder Ray readings : Bull Power reduces from -25 to -97 Bear Power rises from -131 to -173. This indicates, that the Bears are getting their grip stronger, while the Bulls are getting weak as they are now well into the negative territory.
2) The EMAs are pointing downwards. Yesterday, the Nifty has traded and closed below 5070 the 50 DMA. Now this can start to act as a major resistance to any up-move. In fact, in yesterday's trade, the EMAs have generated their own independent sell signal.
3) The stochastics are now well into the oversold zone, indicating that markets support is just round the corner. Yet another signal indicating consolidation ahead.
4) In the above chart, the volumes continue to be constant with falling prices, indicating continuation of the downtrend. The MACD and the ADX are also confirming rise in momentum of the down trend. However, the Bollinger Bands suggest that there is support just near yesterday's bottom.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 4970, we will open fresh long positions with a SL of 4945 and a target of 5040. We will add to these positions only above 5080.
b) Around 5050 we will open fresh short positions with a SL of 5075 and a target of 4990. We will add to these positions only below 4940.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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