Nifty downtrend to continue for a while.
As discussed in our posts off late, the downtrend on the Nifty continues unabated. However, given that today is expiry day for the current series, the Nifty might be volatile. Also to be noted, is that the technicals are showing no signs of the downtrend losing its steam as yet.
1) The Elder Ray readings : Bull Power reduces from -164 to -194. Bear Power rises from -235 to -332. This indicates that the Bulls are out of breath now and that the Bears have really gained a strong grip on the market.
2) The EMAs are pointing downwards and are now stacked against the Bulls.
3) The stochastics are deep in the oversold zone, and a small bounce back cannot be ruled out.
4) In the above chart, the Bollinger Bands are indicating that the downtrend may slowdown from hereon, and the Nifty could stabilize in a narrow range. The ADX is showing a strengthening of the downtrend and is supported by the MACD. However, the fast MACD has just entered the oversold zone.
5) Today being expiry day for the current series, our trading plan is comprised entirely to trade options, instead of futures.
a) Around 4740, we will buy 4700 put and wait till the last half an hour of trade.
b) Around 4620, we will sell 4500 put and wait till the last half an hour of trade.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed in our posts off late, the downtrend on the Nifty continues unabated. However, given that today is expiry day for the current series, the Nifty might be volatile. Also to be noted, is that the technicals are showing no signs of the downtrend losing its steam as yet.
1) The Elder Ray readings : Bull Power reduces from -164 to -194. Bear Power rises from -235 to -332. This indicates that the Bulls are out of breath now and that the Bears have really gained a strong grip on the market.
2) The EMAs are pointing downwards and are now stacked against the Bulls.
3) The stochastics are deep in the oversold zone, and a small bounce back cannot be ruled out.
4) In the above chart, the Bollinger Bands are indicating that the downtrend may slowdown from hereon, and the Nifty could stabilize in a narrow range. The ADX is showing a strengthening of the downtrend and is supported by the MACD. However, the fast MACD has just entered the oversold zone.
5) Today being expiry day for the current series, our trading plan is comprised entirely to trade options, instead of futures.
a) Around 4740, we will buy 4700 put and wait till the last half an hour of trade.
b) Around 4620, we will sell 4500 put and wait till the last half an hour of trade.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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