Nifty likely to spiral downwards, but is approaching key support levels.
As discussed yesterday, selling continued unabated in the markets, and the Nifty closed in the red at 4763 after hitting our resistance levels. Today, given the global cues, the Nifty is likely to open in the negative and is likely to touch its recent lows of around 4650, where buying might come in.
1) The Elder Ray readings : Bull Power increases from -71 to -37 Bear Power reduces from -167 to -126. This indicates that the Bears are still in control, but are losing some of their strength and the Bulls are trying to claw back to their own territory.
2) The EMAs continue to point downwards and the Nifty is trading below all its key DMAs, indicating continuation of the downtrend.
3) The stochastics are pointing downwards, and are still in the neutral zone, indicating there is still room for a fall downwards.
4) In the above chart, the volumes have risen in yesterday's fall, indicating continuation of the selling. The MACD histogram has now gone in the negative, whereas the MACD trend line is giving out a fresh sell signal. The ADX is indicating loss in the selling strength, which suggests that selling might come to an end within a couple of sessions from now.
5) Considering the above, we have devised our trading plan as under
a) Around 4650, we will open fresh long positions with a SL of 4620 and a target of 4820. We will add to these long positions only above 4855.
b) Below 4750, we will open fresh short positions with a SL of 4785 and a target of 4650. We will add to these short positions only below 4610.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, selling continued unabated in the markets, and the Nifty closed in the red at 4763 after hitting our resistance levels. Today, given the global cues, the Nifty is likely to open in the negative and is likely to touch its recent lows of around 4650, where buying might come in.
1) The Elder Ray readings : Bull Power increases from -71 to -37 Bear Power reduces from -167 to -126. This indicates that the Bears are still in control, but are losing some of their strength and the Bulls are trying to claw back to their own territory.
2) The EMAs continue to point downwards and the Nifty is trading below all its key DMAs, indicating continuation of the downtrend.
3) The stochastics are pointing downwards, and are still in the neutral zone, indicating there is still room for a fall downwards.
4) In the above chart, the volumes have risen in yesterday's fall, indicating continuation of the selling. The MACD histogram has now gone in the negative, whereas the MACD trend line is giving out a fresh sell signal. The ADX is indicating loss in the selling strength, which suggests that selling might come to an end within a couple of sessions from now.
5) Considering the above, we have devised our trading plan as under
a) Around 4650, we will open fresh long positions with a SL of 4620 and a target of 4820. We will add to these long positions only above 4855.
b) Below 4750, we will open fresh short positions with a SL of 4785 and a target of 4650. We will add to these short positions only below 4610.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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