Nifty may try to close the gap formed at 4850 4915
Two days ago, we had suggested that "a big move may just be round the corner" and that move was set in yesterday's trade. We were fortunate to have foreseen that and were able to ride the fall, making sizable profits in the course. Today, the Nifty is likely to open with a negative gap and may move down to fill the gaps that were formed a few days ago.
1) The Elder Ray readings : Bull Power reduces from +151 to +102 Bear Power increases from +84 to -26. Bears have just come back into their own territory, whereas the Bulls have just dipped in their momentum.
2) The near EMAs are turning to point downwards, and the Nifty is trading just below the 13EMA which is at 4948, and this could be the pivot point for now. The Nifty has also breached its 50 DMA which is at 5017 and this could act as a stop loss for any short positions created hereafter.
3) The fast stochastics have left the overbought zone and are pointing downwards now. The slow stochastics are still in the overbought zone, indicating weakness for the Nifty.
4) In the above chart, the top Bollinger Band continues to fall steeply, indicating weakness. The MACD histogram is in the positive and falling, indicating a fresh sell call. The ADX is also indicating a fresh sell call.
5) Considering the above, our trading plan for the day is as under
a) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4890. We will add to these short positions only below 4875.
b) Around 4880, we will open fresh long positions with a SL of 4850 and a target of 4955. We will add to these long positions only above 5005.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Two days ago, we had suggested that "a big move may just be round the corner" and that move was set in yesterday's trade. We were fortunate to have foreseen that and were able to ride the fall, making sizable profits in the course. Today, the Nifty is likely to open with a negative gap and may move down to fill the gaps that were formed a few days ago.
1) The Elder Ray readings : Bull Power reduces from +151 to +102 Bear Power increases from +84 to -26. Bears have just come back into their own territory, whereas the Bulls have just dipped in their momentum.
2) The near EMAs are turning to point downwards, and the Nifty is trading just below the 13EMA which is at 4948, and this could be the pivot point for now. The Nifty has also breached its 50 DMA which is at 5017 and this could act as a stop loss for any short positions created hereafter.
3) The fast stochastics have left the overbought zone and are pointing downwards now. The slow stochastics are still in the overbought zone, indicating weakness for the Nifty.
4) In the above chart, the top Bollinger Band continues to fall steeply, indicating weakness. The MACD histogram is in the positive and falling, indicating a fresh sell call. The ADX is also indicating a fresh sell call.
5) Considering the above, our trading plan for the day is as under
a) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4890. We will add to these short positions only below 4875.
b) Around 4880, we will open fresh long positions with a SL of 4850 and a target of 4955. We will add to these long positions only above 5005.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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