Nifty - The week gone byThe Nifty closed for the week at 5059 after opening at 4999 and showing low of 4943 and a high of 5169, with a modest gain of 60 points, which is half of its ATR (Average True Range).This performance seems really tepid compared to the 300 point gain during the week past before that. Clearly the bulls are losing steam and the bears now seem to be rejuvinated. As discussed in our earlier post, "The bearishness is creeping in", the bears got their act together on Friday and hammered down the Nifty. Also our warnings of "Volatile sessions Ahead" proved to be timely and accurate. What's more, all our levels were respected by the markets.Look at our recommendations, Quoted from our earlier post.You can start longs around 5010 with a SL of 4980 and target of 5065. On the other hand, you may also start short positions at around 5110 with a SL of 5140 and a target of 5045.
It could be a rewarding session for both bulls and bears. Pigs will get slaughtered, so don't be a pig.
Watch out for next week, it could be a exciting one with more volatility written all over.
Tomorrow, we will be analyzing things more minutely and will come up with our suggestions for Monday. Do visit us again.
Happy Weekend !!!For cash market recommendations see our Daily Pre Market calls on NSE
Nifty - The week gone by
The Nifty closed for the week at 5059 after opening at 4999 and showing low of 4943 and a high of 5169, with a modest gain of 60 points, which is half of its ATR (Average True Range).
This performance seems really tepid compared to the 300 point gain during the week past before that. Clearly the bulls are losing steam and the bears now seem to be rejuvinated.
As discussed in our earlier post, "The bearishness is creeping in", the bears got their act together on Friday and hammered down the Nifty. Also our warnings of "Volatile sessions Ahead" proved to be timely and accurate. What's more, all our levels were respected by the markets.
Look at our recommendations,
Quoted from our earlier post.
You can start longs around 5010 with a SL of 4980 and target of 5065. On the other hand, you may also start short positions at around 5110 with a SL of 5140 and a target of 5045.
It could be a rewarding session for both bulls and bears. Pigs will get slaughtered, so don't be a pig.
Watch out for next week, it could be a exciting one with more volatility written all over.
Tomorrow, we will be analyzing things more minutely and will come up with our suggestions for Monday. Do visit us again.
Happy Weekend !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Volatile day aheadAs discussed yesterday,
Nifty traded for the entire session in the "No trade zone" as defined by this blog, leaving the common trader clueless about the direction of trade. After opening at 5139, the nifty traded for most of the session in the negative, but the bears could not take it below 5090 and the bulls then took the charge, but could not take the nifty past 5170. Here again, some profit booking was witnessed and 5153 with a small gain of 28 points.1) This is again evident from the Elder Ray readings. Bull Power reduced slightly from +137 to +132 whereas the Bear Power also reduced +59 to +61 ( Bear power in positive indicates weakness of bears). This shows that the bulls are looking tired and the bears are still not ready to strike. 2) The ATR has reduced now from 130 to 114 in the past few trading sessions, suggesting indecision by both the bulls and the bears.3) The simple moving averages continue to fall and the stochastics still are in the overbought zone, indicating that a bearish wave cannot be ruled out.4) In the above chart, the bollinger bands are just starting to expand, indicating volatility increasing in coming sessions. 5) We continue to hold our view of yesterday that in these times of uncertainty, it is better to be on the sidelines till a fresh signal and direction emerges. The new direction will be indicated only when either the bulls are able to take the nifty past 5170 or the bears are able to take the nifty below 5090. The "No trading zone" still persists.Happy Trading.
Volatile day ahead
As discussed yesterday,
Nifty traded for the entire session in the "No trade zone" as defined by this blog, leaving the common trader clueless about the direction of trade. After opening at 5139, the nifty traded for most of the session in the negative, but the bears could not take it below 5090 and the bulls then took the charge, but could not take the nifty past 5170. Here again, some profit booking was witnessed and 5153 with a small gain of 28 points.
1) This is again evident from the Elder Ray readings. Bull Power reduced slightly from +137 to +132 whereas the Bear Power also reduced +59 to +61 ( Bear power in positive indicates weakness of bears). This shows that the bulls are looking tired and the bears are still not ready to strike.
2) The ATR has reduced now from 130 to 114 in the past few trading sessions, suggesting indecision by both the bulls and the bears.
3) The simple moving averages continue to fall and the stochastics still are in the overbought zone, indicating that a bearish wave cannot be ruled out.
4) In the above chart, the bollinger bands are just starting to expand, indicating volatility increasing in coming sessions.
5) We continue to hold our view of yesterday that in these times of uncertainty, it is better to be on the sidelines till a fresh signal and direction emerges. The new direction will be indicated only when either the bulls are able to take the nifty past 5170 or the bears are able to take the nifty below 5090. The "No trading zone" still persists.
Happy Trading.
Bulls in control nowThe Nifty managed to hold on to its gains and closed at a healthy gain of 61 points at 5124. Much of it could be attributed to the gap up opening. Yes, Bulls managed to open with a gap up and were also able to hold on to their gains. Bears tried at the end of the session but could not follow it up. 1) This is clearly evident from the Elder Ray readings where Bull Power has risen from +74 to +137 and the Bear Power has fallen from -56 to +59 (Remember Bear Power has to be in the negative).2) The ATR is gradually decreasing and this again favours the Bulls. 3) However, the Simple Daily Moving averages are still falling and the Bulls still have a lot to do before we can hand over the winner to the bulls. Yesterday, Nifty faced a stiff resistance at 5154 the 30DMA and then there is 5170 the recent two double bottoms.4) In the above chart, Nifty is above the center of the Bollinger Bands and the volumes are at their highs. MACD is showing a upmove which is also supported by the ADX.5) Also to be noted is that the Nifty future is still trading at a hefty discount. 6) Our view is that if the Nifty can sustain the bear onslaught between 5154 and 5180 then it will reach 5230 where again the bears will attack. Once 5230 is cleared, 5320 will be the next level to watch out for. But 5170 still remains a major hurdle to be crossed. Nifty Strategies for the day :Buy above 5170 with a SL of 5140 and a target of 5230 Sell below 5076 with a SL of 5100 and a target of 5000Observe 5080 5170 as a NO TRADING ZONE Happy Trading.
Bulls in control now
The Nifty managed to hold on to its gains and closed at a healthy gain of 61 points at 5124. Much of it could be attributed to the gap up opening. Yes, Bulls managed to open with a gap up and were also able to hold on to their gains. Bears tried at the end of the session but could not follow it up.
1) This is clearly evident from the Elder Ray readings where Bull Power has risen from +74 to +137 and the Bear Power has fallen from -56 to +59 (Remember Bear Power has to be in the negative).
2) The ATR is gradually decreasing and this again favours the Bulls.
3) However, the Simple Daily Moving averages are still falling and the Bulls still have a lot to do before we can hand over the winner to the bulls. Yesterday, Nifty faced a stiff resistance at 5154 the 30DMA and then there is 5170 the recent two double bottoms.
4) In the above chart, Nifty is above the center of the Bollinger Bands and the volumes are at their highs. MACD is showing a upmove which is also supported by the ADX.
5) Also to be noted is that the Nifty future is still trading at a hefty discount.
6) Our view is that if the Nifty can sustain the bear onslaught between 5154 and 5180 then it will reach 5230 where again the bears will attack. Once 5230 is cleared, 5320 will be the next level to watch out for. But 5170 still remains a major hurdle to be crossed.
Nifty Strategies for the day :
Buy above 5170 with a SL of 5140 and a target of 5230
Sell below 5076 with a SL of 5100 and a target of 5000
Observe 5080 5170 as a NO TRADING ZONE
Happy Trading.
Expect a volatile session todayAs suggested yesterday, the Nifty started on a bearish note and remained bearish for most of the morning session, hitting a low of around 4933. We have since covered our short position initiated at 5015 at the levels of 4950 booking a profit of 65 points.Post the afternoon session, bears gave away the advantage and the bulls took over and never gave back their advantage for the rest of the session, managing to close the Nifty well above 5050 at 5064. Our reading for the day ahead for 07 Sept 2011 as under1) Nifty might find a resistance at 5110 5120 levels 2) The BullPower of the Elder Ray has increased from 42 to 74. The BearPower has also increased from -24 to -56 indicating a highly volatile session ahead with both waiting for opportunities and striking with full power.3) The stochastics signal Nifty just entering a overbought zone. 4) In the above chart, Nifty is poised right at the center of the Bollinger Bands indicating either ways movement. The ADX is falling and MACD is showing a upmove, indicating a bullish bias.Overall, the session ahead calls for a great amount of patience and caution. Patience, for waiting for the opportunities to enter and also for a favourable exit. Certainly, not for people who cannot see virtual losses and wait for profits. Stay in cash as far as possible would be our advise to such traders. You can start longs around 5010 with a SL of 4980 and target of 5065. On the other hand, you may also start short positions at around 5110 with a SL of 5140 and a target of 5045.
It could be a rewarding session for both bulls and bears. Pigs will get slaughtered, so don't be a pig. Happy trading !!!
Expect a volatile session today
As suggested yesterday, the Nifty started on a bearish note and remained bearish for most of the morning session, hitting a low of around 4933. We have since covered our short position initiated at 5015 at the levels of 4950 booking a profit of 65 points.
Post the afternoon session, bears gave away the advantage and the bulls took over and never gave back their advantage for the rest of the session, managing to close the Nifty well above 5050 at 5064.
Our reading for the day ahead for 07 Sept 2011 as under
1) Nifty might find a resistance at 5110 5120 levels
2) The BullPower of the Elder Ray has increased from 42 to 74. The BearPower has also increased from -24 to -56 indicating a highly volatile session ahead with both waiting for opportunities and striking with full power.
3) The stochastics signal Nifty just entering a overbought zone.
4) In the above chart, Nifty is poised right at the center of the Bollinger Bands indicating either ways movement. The ADX is falling and MACD is showing a upmove, indicating a bullish bias.
Overall, the session ahead calls for a great amount of patience and caution. Patience, for waiting for the opportunities to enter and also for a favourable exit. Certainly, not for people who cannot see virtual losses and wait for profits. Stay in cash as far as possible would be our advise to such traders.
You can start longs around 5010 with a SL of 4980 and target of 5065. On the other hand, you may also start short positions at around 5110 with a SL of 5140 and a target of 5045.
It could be a rewarding session for both bulls and bears. Pigs will get slaughtered, so don't be a pig. Happy trading !!!
Bearishness starts creeping in the NiftyAlthough the nifty formed a green candle with a long bottom tail, making it appear that bulls have retained their control, here are some facts that could help proving otherwise.1) There were 13 new 52 week highs as against 49 new 52 week lows on 5th Sept 2011. In a bullish market, the new highs have got to be higher than the new lows. NHNL is a key indicator. 2) As per the Elder Ray, the BullPower has reduced from 130 to 42 whereas the BearPower has increased from 9 to -24 (Negative values for BearPower have greater significance)
3) There are only 19 Stocks ( 2 from Nifty 50) whose last close > 7DMA > 30 DMA > 50 DMA > 100DMA making them positive. Whereas there are 44 (6 from Nifty 50) Stocks whose last close < 7DMA < 30DMA < 50DMA <100DMA making them laggards.3) In the chart above, the Bollinger is clearly pointing downwards and the 20 EMA has started showing some resistance.
4) The ADX in the above chart, which had given a fresh buy signal a couple of sessions ago, has now started signalling a fresh Sell.
5) Today's rise from the lows of around 4960 has happened at relatively low volumes and it is to be noted that US has a holiday today on account of Labor day.
6) Global equity markets have seen downfalls ranging from 2% to 5% today.
Considering all this, our opinion is that the Nifty is getting ready for a bearish move in the next couple of sessions. We, at our end have initiated a fresh short position today at 5015 with a target of 4850 and a stop loss of 5045Acetylene Plant
Bearishness starts creeping in the Nifty
Although the nifty formed a green candle with a long bottom tail, making it appear that bulls have retained their control, here are some facts that could help proving otherwise.
1) There were 13 new 52 week highs as against 49 new 52 week lows on 5th Sept 2011. In a bullish market, the new highs have got to be higher than the new lows. NHNL is a key indicator.
2) As per the Elder Ray, the BullPower has reduced from 130 to 42 whereas the BearPower has increased from 9 to -24 (Negative values for BearPower have greater significance)
3) There are only 19 Stocks ( 2 from Nifty 50) whose last close > 7DMA > 30 DMA > 50 DMA > 100DMA making them positive. Whereas there are 44 (6 from Nifty 50) Stocks whose last close < 7DMA < 30DMA < 50DMA <100DMA making them laggards.
3) In the chart above, the Bollinger is clearly pointing downwards and the 20 EMA has started showing some resistance.
4) The ADX in the above chart, which had given a fresh buy signal a couple of sessions ago, has now started signalling a fresh Sell.
5) Today's rise from the lows of around 4960 has happened at relatively low volumes and it is to be noted that US has a holiday today on account of Labor day.
6) Global equity markets have seen downfalls ranging from 2% to 5% today.
Considering all this, our opinion is that the Nifty is getting ready for a bearish move in the next couple of sessions. We, at our end have initiated a fresh short position today at 5015 with a target of 4850 and a stop loss of 5045
Acetylene Plant
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Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.
