Nifty may continue to slide down
As discussed yesterday, the Nifty tried to retest the recent lows, before staging a bounce back in the last half an hour of trade. Even after that smart looking technical bounce back, the markets are still in the bearish control, and today, after a negative opening, selling is likely to continue unabated.
1) The Elder Ray readings : Bull Power reduces from -1 to -71 Bear Power rises from -156 to -167, indicating that the Bears are still driving the markets, and that the Bulls have now really lost their grounds.
2) The EMAs continue to point downwards as also are the DMAs, indicating that we are still in the downtrend.
3) The stochastics too are in the neutral zone and are pointing downwards, indicating a downtrend as well.
4) In the above chart, the MACD continues to go down suggesting bearishness for the nifty. Also the ADX still is holding its sell signal.
5) Based on the above, our trading plan for the day is as under
a) Below 4830, we will open fresh short positions with a SL of 4855 and a target of 4730. We will add to these short positions only below 4700.
b) We will refrain from opening long positions for the day at least.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty tried to retest the recent lows, before staging a bounce back in the last half an hour of trade. Even after that smart looking technical bounce back, the markets are still in the bearish control, and today, after a negative opening, selling is likely to continue unabated.
1) The Elder Ray readings : Bull Power reduces from -1 to -71 Bear Power rises from -156 to -167, indicating that the Bears are still driving the markets, and that the Bulls have now really lost their grounds.
2) The EMAs continue to point downwards as also are the DMAs, indicating that we are still in the downtrend.
3) The stochastics too are in the neutral zone and are pointing downwards, indicating a downtrend as well.
4) In the above chart, the MACD continues to go down suggesting bearishness for the nifty. Also the ADX still is holding its sell signal.
5) Based on the above, our trading plan for the day is as under
a) Below 4830, we will open fresh short positions with a SL of 4855 and a target of 4730. We will add to these short positions only below 4700.
b) We will refrain from opening long positions for the day at least.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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