Nifty is so precariously poised, that it is anybody's market now.
As discussed yesterday, in a two way swinging market, the Nifty traded between 4633 and 4741. Today, given the global cues, the nifty is likely to open positive, but is nearing short term resistances, where the bears could strike with venom.
1) The Elder Ray readings : Bull Power increases from -44 to -9 Bear Power reduces from -150 to -116, showing that all the efforts by the Bulls over the past 2 sessions have still not got them into the positive, and now the bears need to show some strength, else the nifty can run away upwards.
2) The 8EMA has now turned flat, while all the rest EMAs and the DMAs continue to point downwards. The nifty is trading near its 13 EMA which is at 4749 and could be considered a pivot point for launching fresh positions.
3) The stochastics are now out of the oversold zone and are pointing upwards.
4) In the above chart, the volumes in yesterday's rise have depleted, indicating suspicion on the rise. The top and the bottom Bollinger Bands are turning flat, indicating volatile consolidation. The MACD is still in the negative, but is rising, which is in favor of the Bulls. The ADX is showing that though the strength of the downfall has come down, it is still stronger than the upswing, indicating that the bears might come in any time now.
5) Considering the above, we have devised our trading plan for the day as under
a) Below 4770, we will open fresh short positions with a SL of 4790 and a target of 4690. We will add to these short positions only below 4640.
b) Above 4665, we will open fresh long positions with a SL of 4645 and a target of 4730. We will add to these long positions only above 4800.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, in a two way swinging market, the Nifty traded between 4633 and 4741. Today, given the global cues, the nifty is likely to open positive, but is nearing short term resistances, where the bears could strike with venom.
1) The Elder Ray readings : Bull Power increases from -44 to -9 Bear Power reduces from -150 to -116, showing that all the efforts by the Bulls over the past 2 sessions have still not got them into the positive, and now the bears need to show some strength, else the nifty can run away upwards.
2) The 8EMA has now turned flat, while all the rest EMAs and the DMAs continue to point downwards. The nifty is trading near its 13 EMA which is at 4749 and could be considered a pivot point for launching fresh positions.
3) The stochastics are now out of the oversold zone and are pointing upwards.
4) In the above chart, the volumes in yesterday's rise have depleted, indicating suspicion on the rise. The top and the bottom Bollinger Bands are turning flat, indicating volatile consolidation. The MACD is still in the negative, but is rising, which is in favor of the Bulls. The ADX is showing that though the strength of the downfall has come down, it is still stronger than the upswing, indicating that the bears might come in any time now.
5) Considering the above, we have devised our trading plan for the day as under
a) Below 4770, we will open fresh short positions with a SL of 4790 and a target of 4690. We will add to these short positions only below 4640.
b) Above 4665, we will open fresh long positions with a SL of 4645 and a target of 4730. We will add to these long positions only above 4800.
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.