Nifty likely to spike up, but will meet resistance regularly
As discussed on Friday, the Nifty filled the down gaps and traded in the negative for almost the entire trading session. Today, given the global cues, the Nifty is likely to open with a positive gap up, but will most likely meet resistance at higher levels, and will try to test its recent lows.
1) The Elder Ray readings : Bull Power reduced from +102 to -18 Bear Power increased from -26 to -94. This shows that the Bears are now increasing in strength and that the Bulls have lost all their recently accumulated grounds.
2) All the EMAs and the DMAs have now started pointing downwards, indicating resumption of the intermediary down trend.
3) The stochastics, have now moved out of the overbought zone and have started pointing downwards, strengthening the hopes for the bears.
4) In the above chart, the upper Bollinger Band continues to fall steeply, whereas the bottom Bollinger Band is turning flat, and threatening to fall as well. The MACD histogram in in the positive and falling, giving out a sell signal. The ADX has also strengthened its sell signal.
5) Considering the above, our trading plan for the day is as under
a) Around 4925, we will open fresh short positions, with a SL of 4955 and a target of 4850. We will add to these short positions, only below 4820.
b) Around 4845, we will open fresh long positions, with a SL of 4825 and a target of 4890. We will add to these long positions, only above 4960.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the Nifty filled the down gaps and traded in the negative for almost the entire trading session. Today, given the global cues, the Nifty is likely to open with a positive gap up, but will most likely meet resistance at higher levels, and will try to test its recent lows.
1) The Elder Ray readings : Bull Power reduced from +102 to -18 Bear Power increased from -26 to -94. This shows that the Bears are now increasing in strength and that the Bulls have lost all their recently accumulated grounds.
2) All the EMAs and the DMAs have now started pointing downwards, indicating resumption of the intermediary down trend.
3) The stochastics, have now moved out of the overbought zone and have started pointing downwards, strengthening the hopes for the bears.
4) In the above chart, the upper Bollinger Band continues to fall steeply, whereas the bottom Bollinger Band is turning flat, and threatening to fall as well. The MACD histogram in in the positive and falling, giving out a sell signal. The ADX has also strengthened its sell signal.
5) Considering the above, our trading plan for the day is as under
a) Around 4925, we will open fresh short positions, with a SL of 4955 and a target of 4850. We will add to these short positions, only below 4820.
b) Around 4845, we will open fresh long positions, with a SL of 4825 and a target of 4890. We will add to these long positions, only above 4960.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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