Bears still driving the markets, despite a positive close yesterday.
As discussed yesterday, the expiry jitters were felt throughout the trading session, before the Nifty recovered due to some short covering in the late trade, to close in the positive zone. Given the global cues today, the Nifty is likely to open with a negative bias. Technical indications show that the Bears still hold their grip on the markets, and the trend is unlikely to reverse in a hurry.
1) The Elder Ray readings : Bull Power rises from -194 to -171. Bear Power reduces from -332 to -303. This shows that Bears have given away some ground after a long haul, however, the Bulls have not been able to take full advantage of the opportunity.
2) The EMAs continue to point downwards, so are the DMAs too. The EMAs are tending to define the Nifty trading range between 4610 and 4870, which could be quite decisive during the December 11 series.
3) The stochastics are still in the oversold zone, and a bounce back cannot be ruled out here.
4) In the above chart, Nifty is just about leaving the lower Bollinger Band, which is suggestive of a bounce back. The MACD is also supportive of a bounce back. The ADX is showing loss of momentum in the downtrend. However, the vital strengthening of the uptrend is missing. This suggests that any bounce back will be short-lived and weak.
5) Given the above indications, our trading plan for the day is as under,
a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4680. We will add to these short positions only below 4640.
b) Around 4670, we will open fresh long positions with a SL of 4645 and a target of 4750. We will add to these long positions only above 4800.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the expiry jitters were felt throughout the trading session, before the Nifty recovered due to some short covering in the late trade, to close in the positive zone. Given the global cues today, the Nifty is likely to open with a negative bias. Technical indications show that the Bears still hold their grip on the markets, and the trend is unlikely to reverse in a hurry.
1) The Elder Ray readings : Bull Power rises from -194 to -171. Bear Power reduces from -332 to -303. This shows that Bears have given away some ground after a long haul, however, the Bulls have not been able to take full advantage of the opportunity.
2) The EMAs continue to point downwards, so are the DMAs too. The EMAs are tending to define the Nifty trading range between 4610 and 4870, which could be quite decisive during the December 11 series.
3) The stochastics are still in the oversold zone, and a bounce back cannot be ruled out here.
4) In the above chart, Nifty is just about leaving the lower Bollinger Band, which is suggestive of a bounce back. The MACD is also supportive of a bounce back. The ADX is showing loss of momentum in the downtrend. However, the vital strengthening of the uptrend is missing. This suggests that any bounce back will be short-lived and weak.
5) Given the above indications, our trading plan for the day is as under,
a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4680. We will add to these short positions only below 4640.
b) Around 4670, we will open fresh long positions with a SL of 4645 and a target of 4750. We will add to these long positions only above 4800.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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