With Nifty stumbling at near resistance, the downtrend is likely to resume today.
As discussed recently, the Nifty traded with extremely depleted volumes and has not been able to sustain above 4785 which is its near time resistance. Today, given the global cues, the Nifty is likely to open with a negative bias, which may strengthen the downturn as the session goes by.
1) The Elder Ray readings : Bull Power increases from +38 to +51 Bear Power also increases from -31 to -26. This indicates that the Bulls have slowed down and that the Bears are regaining their strength and can be expected to strike back strongly now.
2) The EMAs have started pointing downwards now and the DMAs are anyways coming down.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes are still depleted, and the nifty has gone nowhere in the last two sessions. The MACD is still in the negative and the ADX is showing slowing down of the up-move.
5) Considering the above, we have devised our trading plan for the day as under.
a) Below 4745, we will open fresh short positions with a SL of 4785 and a target of 4645. We will add to these short positions only below 4615.
b) Around 4630, we will open fresh long positions with a SL of 4615 and a target of 4685. We will add to these long positions only above 4785.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed recently, the Nifty traded with extremely depleted volumes and has not been able to sustain above 4785 which is its near time resistance. Today, given the global cues, the Nifty is likely to open with a negative bias, which may strengthen the downturn as the session goes by.
1) The Elder Ray readings : Bull Power increases from +38 to +51 Bear Power also increases from -31 to -26. This indicates that the Bulls have slowed down and that the Bears are regaining their strength and can be expected to strike back strongly now.
2) The EMAs have started pointing downwards now and the DMAs are anyways coming down.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes are still depleted, and the nifty has gone nowhere in the last two sessions. The MACD is still in the negative and the ADX is showing slowing down of the up-move.
5) Considering the above, we have devised our trading plan for the day as under.
a) Below 4745, we will open fresh short positions with a SL of 4785 and a target of 4645. We will add to these short positions only below 4615.
b) Around 4630, we will open fresh long positions with a SL of 4615 and a target of 4685. We will add to these long positions only above 4785.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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