Nifty all set to continue its consolidation before the next big move.
As discussed yesterday, "Nifty is nearing key support levels, but Bears not ready to loosen their stranglehold. " the Nifty found supports at lower levels, and tried to rise. However, the bears did not allow it to close in the green and the Nifty had to close well below its previous close. Today, given the global cues, the Nifty is likely to open in the negative, but again may find support around 4520.
1) The Elder Ray readings : Bull Power reduces from -10 to -175 Bear Power increases from -200 to -242, this indicates that the Bears are in no mood to let go their control on the Nifty and that the Bulls are so exhausted that they are unable to even claw back to their territory.
2) The EMAs continue to point downwards and the Nifty is trading well below all its EMAs and DMAs.
3) The stochastics are well in the oversold zone, indicating that a pull back on the Nifty cannot be ruled out.
4) In the above chart, the volumes have depleted in yesterday's pullback from lows. The MACD is still holding onto its sell signal. The ADX is indicating of the strengthening of the bearish trend, and the Bollinger Bands are expanding to accommodate the further downfall in the Nifty.
5) Based on the above, our trading plan for the day is as under
a) Below 4630, we will open fresh short positions with a SL of 4650 and a target of 4540. We will add to these short positions only below 4505.
b) Around 4520, we will open fresh long positions with a SL of 4500 and a target of 4580. We will add to these long positions only above 4655.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, "Nifty is nearing key support levels, but Bears not ready to loosen their stranglehold. " the Nifty found supports at lower levels, and tried to rise. However, the bears did not allow it to close in the green and the Nifty had to close well below its previous close. Today, given the global cues, the Nifty is likely to open in the negative, but again may find support around 4520.
1) The Elder Ray readings : Bull Power reduces from -10 to -175 Bear Power increases from -200 to -242, this indicates that the Bears are in no mood to let go their control on the Nifty and that the Bulls are so exhausted that they are unable to even claw back to their territory.
2) The EMAs continue to point downwards and the Nifty is trading well below all its EMAs and DMAs.
3) The stochastics are well in the oversold zone, indicating that a pull back on the Nifty cannot be ruled out.
4) In the above chart, the volumes have depleted in yesterday's pullback from lows. The MACD is still holding onto its sell signal. The ADX is indicating of the strengthening of the bearish trend, and the Bollinger Bands are expanding to accommodate the further downfall in the Nifty.
5) Based on the above, our trading plan for the day is as under
a) Below 4630, we will open fresh short positions with a SL of 4650 and a target of 4540. We will add to these short positions only below 4505.
b) Around 4520, we will open fresh long positions with a SL of 4500 and a target of 4580. We will add to these long positions only above 4655.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.