The fresh series may open positive, but bears could take over soon
As discussed yesterday, selling continued on the Nifty throughout the session and the Nifty closed at 4646 before touching our resistance levels of 4700. Today, given the global cues, and considering that this is a fresh start to a fresh series, the Nifty may trade in the positive, but then bears would strike soon and with venom.
1) The Elder Ray readings :Bull Power reduces from +13 to -28 Bear Power increases from -56 to -90, showing that the Bears are regaining their strength, and that the downtrend may continue now.
2) The EMAs and the DMAs are now all pointing downwards and are stacked to indicate a bear market.
3) The stochastics are pointing downwards and are some distance away from the oversold zone, indicating that there is still room for another fall on the Nifty.
4) In the above chart, the volumes have increased in yesterday's fall indicating sustainability to the downtrend. This downtrend is also getting confirmation on the MACD and the ADX.
5) Considering the above, we have devised our trading plan for the day as under.
a) Below 4730, we will open fresh short positions with a SL of 4760 and a target of 4630. We will add to these short positions only below 4610.
b) Around 4625, we will open fresh long positions with a SL of 4610 and a target of 4675. 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 yesterday, selling continued on the Nifty throughout the session and the Nifty closed at 4646 before touching our resistance levels of 4700. Today, given the global cues, and considering that this is a fresh start to a fresh series, the Nifty may trade in the positive, but then bears would strike soon and with venom.
1) The Elder Ray readings :Bull Power reduces from +13 to -28 Bear Power increases from -56 to -90, showing that the Bears are regaining their strength, and that the downtrend may continue now.
2) The EMAs and the DMAs are now all pointing downwards and are stacked to indicate a bear market.
3) The stochastics are pointing downwards and are some distance away from the oversold zone, indicating that there is still room for another fall on the Nifty.
4) In the above chart, the volumes have increased in yesterday's fall indicating sustainability to the downtrend. This downtrend is also getting confirmation on the MACD and the ADX.
5) Considering the above, we have devised our trading plan for the day as under.
a) Below 4730, we will open fresh short positions with a SL of 4760 and a target of 4630. We will add to these short positions only below 4610.
b) Around 4625, we will open fresh long positions with a SL of 4610 and a target of 4675. 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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