Nifty Weekly ReviewThe Nifty ended the week with a loss of 55 points over the last weekly close. The weekly high on the Nifty was noted at 4923 and the weekly low was at 4728. Earlier in the week, we had sensed that Nifty will depict a range bound consolidation, will test its near term lows and open with an up gap, and on all three counts, the Nifty did oblige.The weekly Nifty range is still about 200 points, but it has fallen down from 5050 4850 to 4950 4750. Also to be noted is that in spite of huge recovery in the global equity markets, the Indian markets have shown some rigidness. This indicates, that the Indian markets are still not out of the clutches of the bearish trend, and any rise will be quickly sold off, unless the Nifty gives couple of consecutive closes above the upper end of the range.In the above chart, the Nifty looks like having a strong resistance in the 4850 5000 range, however, the Bollinger Bands have now opened up a possibility of 4640 as well. This makes trading in the next week highly interesting and taking well planned positions can yield good profits in the coming week.
Remembering to keep an open mind before the start of each trading session, and not get bogged down by our previously taken positions, or by outcome of our last trade, will be the key to success in the next week.
Happy Trading !!!
Bullish looking stocks for the next week :
EIHAHOTELS EONELECT PATNI PLETHICO RSSOFTWARE SHIV-VANI SIMPLEX TORNTPOWER
Bearish looking stocks for the next week :
ABGSHIP BOC DHANUKA GANESHHOUC GRINDWELL INOXLEISUR JBMA KAMATHOTEL KSK LGBBROSLTD MBLINFRA NILKAMAL PRAKASHSTL RUSHIL VINATIORGAFor cash market recommendations see our Daily Pre Market calls on NSE
Nifty Weekly Review
The Nifty ended the week with a loss of 55 points over the last weekly close. The weekly high on the Nifty was noted at 4923 and the weekly low was at 4728. Earlier in the week, we had sensed that Nifty will depict a range bound consolidation, will test its near term lows and open with an up gap, and on all three counts, the Nifty did oblige.
The weekly Nifty range is still about 200 points, but it has fallen down from 5050 4850 to 4950 4750.
Also to be noted is that in spite of huge recovery in the global equity markets, the Indian markets have shown some rigidness. This indicates, that the Indian markets are still not out of the clutches of the bearish trend, and any rise will be quickly sold off, unless the Nifty gives couple of consecutive closes above the upper end of the range.
In the above chart, the Nifty looks like having a strong resistance in the 4850 5000 range, however, the Bollinger Bands have now opened up a possibility of 4640 as well.
This makes trading in the next week highly interesting and taking well planned positions can yield good profits in the coming week.
Remembering to keep an open mind before the start of each trading session, and not get bogged down by our previously taken positions, or by outcome of our last trade, will be the key to success in the next week.
Happy Trading !!!
Bullish looking stocks for the next week :
EIHAHOTELS EONELECT PATNI PLETHICO RSSOFTWARE SHIV-VANI SIMPLEX TORNTPOWER
Bearish looking stocks for the next week :
ABGSHIP BOC DHANUKA GANESHHOUC GRINDWELL INOXLEISUR JBMA KAMATHOTEL KSK LGBBROSLTD MBLINFRA NILKAMAL PRAKASHSTL RUSHIL VINATIORGA
For cash market recommendations see our Daily Pre Market calls on NSE
Bullish trend might continue after a gap up opening As discussed in our last post, the Nifty remained precariously poised at the lower end of its current trading range. After having a strong opening at 4791 and trading in the green till 4828 in the morning session, the Nifty lost all of its gains and closed at 4751 after hitting a day low of 4741. Today, riding on the global cues, Nifty may have a 100 point gap up opening. But then what? Lets analyze this a bit closely.1) The Elder Ray readings : Bull power reduced from -65 to -80, Bear power also reduced from -206 to -167. This reaffirms a minor bullish trend within a major bearish trend. Bulls have been under water, and may come up for breath.2) The moving averages continue to point downwards, confirming a major bearish trend. However, there is a gap between 4880 and 4920 which can be filled, without really changing the moving averages direction.3) The stochastics have now fully entered the oversold zone, and indicate the possibility of some buying coming into play.4) From the chart above, we can see that the MACD is falling, and the ADX shows a weakening bearish run. Contradictory signals those.5) As we write this post, the SGX Nifty is trading about 120 points above our last close.6) Considering the above, our trading plan for the day is as under.a) We will try to sell the gaps, by looking out to open short positions around 4920 with a SL of 4950 and a target of 4820. We will add to these shorts, only below 4790.b) If we get the opportunity before the Nifty touches 4920, to buy around 4850, then we might open long positions at 4850 with a SL of 4810 and a target of 4910. But this step is only before the market touches 4920 levels and not before that.Today's trading range expected within 4810 4930Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Bullish trend might continue after a gap up opening
As discussed in our last post, the Nifty remained precariously poised at the lower end of its current trading range. After having a strong opening at 4791 and trading in the green till 4828 in the morning session, the Nifty lost all of its gains and closed at 4751 after hitting a day low of 4741. Today, riding on the global cues, Nifty may have a 100 point gap up opening. But then what? Lets analyze this a bit closely.
1) The Elder Ray readings : Bull power reduced from -65 to -80, Bear power also reduced from -206 to -167. This reaffirms a minor bullish trend within a major bearish trend. Bulls have been under water, and may come up for breath.
2) The moving averages continue to point downwards, confirming a major bearish trend. However, there is a gap between 4880 and 4920 which can be filled, without really changing the moving averages direction.
3) The stochastics have now fully entered the oversold zone, and indicate the possibility of some buying coming into play.
4) From the chart above, we can see that the MACD is falling, and the ADX shows a weakening bearish run. Contradictory signals those.
5) As we write this post, the SGX Nifty is trading about 120 points above our last close.
6) Considering the above, our trading plan for the day is as under.
a) We will try to sell the gaps, by looking out to open short positions around 4920 with a SL of 4950 and a target of 4820. We will add to these shorts, only below 4790.
b) If we get the opportunity before the Nifty touches 4920, to buy around 4850, then we might open long positions at 4850 with a SL of 4810 and a target of 4910. But this step is only before the market touches 4920 levels and not before that.
Today's trading range expected within 4810 4930
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty at the lower end of its current trading range As discussed yesterday, the Nifty, in the morning session, made an attempt to cross 4890. But once this attempt failed, and Nifty broke 4820, the markets witnessed a free fall and the recent low of 4720 was tested again before closing at 4772. Let us do some analysis to find what could emerge out today.1) The Elder Ray readings : Bull Power increased from -82 to -65 Bear Power increased from -137 to -206. This indicates that the Bears have gained control of the Nifty, and any rise will be quickly sold off.2) The near term 7DMA has started flattening out. However, the 13EMA has lost around 10% in the last 2 sessions. This indicates that there will be attempts for the Nifty to rise in the next couple of sessions, but these attempts may not succeed to keep the Nifty afloat.3) The fast stochastics have entered the oversold zone. However, the slow stochastics are still above the oversold zone. This indicates, that there is some more room for a downward movement on the Nifty.4) In the above chart, the MACD has started falling again. The ADX is showing a sustainable bearish move on the rise. However, the Nifty is touching the lower Bollinger Band. 5) The level of 4785 is 38.2% of the Nifty move from 2253 on 27 Oct 2008 (almost 3 years ago) to 6336 on 08 Nov 2010. Looking at the price and time cycle, the Nifty can come down near to 4300 within a very short period.6) Considering all the above, our trading plan for the day is a) We will look out for opening short positions at higher levels of 4800 to 4820 with a SL of 4860 and a target of 4720. We will add to our short positions only below 4700 with a target of 4620.b) We will look for opening long positions near 4710 with a SL of 4685 and a target of 4800. We will add to our positions only above 4840. Today's range for the Nifty - 4700 4820Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty at the lower end of its current trading range
As discussed yesterday, the Nifty, in the morning session, made an attempt to cross 4890. But once this attempt failed, and Nifty broke 4820, the markets witnessed a free fall and the recent low of 4720 was tested again before closing at 4772. Let us do some analysis to find what could emerge out today.
1) The Elder Ray readings : Bull Power increased from -82 to -65 Bear Power increased from -137 to -206. This indicates that the Bears have gained control of the Nifty, and any rise will be quickly sold off.
2) The near term 7DMA has started flattening out. However, the 13EMA has lost around 10% in the last 2 sessions. This indicates that there will be attempts for the Nifty to rise in the next couple of sessions, but these attempts may not succeed to keep the Nifty afloat.
3) The fast stochastics have entered the oversold zone. However, the slow stochastics are still above the oversold zone. This indicates, that there is some more room for a downward movement on the Nifty.
4) In the above chart, the MACD has started falling again. The ADX is showing a sustainable bearish move on the rise. However, the Nifty is touching the lower Bollinger Band.
5) The level of 4785 is 38.2% of the Nifty move from 2253 on 27 Oct 2008 (almost 3 years ago) to 6336 on 08 Nov 2010. Looking at the price and time cycle, the Nifty can come down near to 4300 within a very short period.
6) Considering all the above, our trading plan for the day is
a) We will look out for opening short positions at higher levels of 4800 to 4820 with a SL of 4860 and a target of 4720. We will add to our short positions only below 4700 with a target of 4620.
b) We will look for opening long positions near 4710 with a SL of 4685 and a target of 4800. We will add to our positions only above 4840.
Today's range for the Nifty - 4700 4820
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may stage a bounce back today As discussed yesterday, the Nifty showed range bound consolidation during the entire trading session. After a weak opening at 4874, the Nifty traded within a 50 point range before closing at 4850 losing 94 points against the previous close. Today, the Nifty is likely to have a soft opening and is likely to stage a bounce back attempt. Will this attempt succeed? Let us do some Tech Analysis to find out.1) The Elder Ray readings : Bull Power reduced from +46 to -82 Bear Power increases from -56 to -137 This indicates that the Bears are in control and the Bulls are again losing power.2) The moving averages have again started to point downwards.3) The stochastics are coming near the oversold zone and can enter the zone by the end of today.4) In the above chart, the MACD has started declining again. The ADX has given out a fresh sell signal. ( The fact to be noted here, is that the ADX is an advance signal ) . The Nifty is almost near the lower Bollinger Band.5) Considering all the above facts, the Nifty is likely to open weak and trade in the red zone for the first half of today's session. However, after a test of 4780 4760 zone, it is likely to bounce back and test 4880. Around 4880 if a fresh wave of selling does not come, then Nifty will try for 4930. Below 4760, there is a strong support at 4720.6) Our trading plan for the day :a) We will look out for opening long positions around 4780 with a SL of 4750 and a target of 4850. We will add to long positions above 4890 only.b) We will look out for opening short positions if the Nifty is not able to take out 4880. Then, at around 4860 we will open short positions for a target of 4800 and a SL of 4890.Today's range for the Nifty - 4760 4940Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may stage a bounce back today
As discussed yesterday, the Nifty showed range bound consolidation during the entire trading session. After a weak opening at 4874, the Nifty traded within a 50 point range before closing at 4850 losing 94 points against the previous close. Today, the Nifty is likely to have a soft opening and is likely to stage a bounce back attempt. Will this attempt succeed? Let us do some Tech Analysis to find out.
1) The Elder Ray readings : Bull Power reduced from +46 to -82 Bear Power increases from -56 to -137 This indicates that the Bears are in control and the Bulls are again losing power.
2) The moving averages have again started to point downwards.
3) The stochastics are coming near the oversold zone and can enter the zone by the end of today.
4) In the above chart, the MACD has started declining again. The ADX has given out a fresh sell signal. ( The fact to be noted here, is that the ADX is an advance signal ) . The Nifty is almost near the lower Bollinger Band.
5) Considering all the above facts, the Nifty is likely to open weak and trade in the red zone for the first half of today's session. However, after a test of 4780 4760 zone, it is likely to bounce back and test 4880. Around 4880 if a fresh wave of selling does not come, then Nifty will try for 4930. Below 4760, there is a strong support at 4720.
6) Our trading plan for the day :
a) We will look out for opening long positions around 4780 with a SL of 4750 and a target of 4850. We will add to long positions above 4890 only.
b) We will look out for opening short positions if the Nifty is not able to take out 4880. Then, at around 4860 we will open short positions for a target of 4800 and a SL of 4890.
Today's range for the Nifty - 4760 4940
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to consolidate in a tight range after a weak opening On Friday, the Nifty found renewed resistance at 5030 and took support at 4924, before closing at 4943. Today, given the global cues, the Nifty is slated to open on a weak note. Seems like it could be a day full of trading opportunities for both the bulls and the bears.1) The Elder Ray readings : Bull Power reduced slightly from 48 to 46 also the Bear Power reduced from -80 to -56. This indicates that both are safe in their zone. The Bulls are in the positive and the Bears are in the negative. However, both are weakening. This coupled with the falling ATR, is a first indication of the range tightening and consolidation periods in forthcoming sessions.2) The 7DMA and the 50DMA have started to flatten out. While the EMAs are still pointing downwards. The stochastics are also right in the middle of the overbought and oversold range.3) In the above chart, the Bollinger bands are flattening out. The +ADX is converging with the -ADX showing sustainable consolidation ahead of us.4) Today, the market after opening with down gaps, can try to refill this gap.5) Considering the above, a) We will look out for opening longs 20 points above the opening mark, with a SL 20 points below the opening mark and a target of 4910. We will add to our longs only above 4960.b) Till the Nifty continues to trade below its opening, we will refrain from opening any new positions, as 4800 is a very strong support and opening shorts below 4850 will not be that rewarding as compared to the risk.For today, 4850 4950 could be the trading range for the Nifty.Happy trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to consolidate in a tight range after a weak opening
On Friday, the Nifty found renewed resistance at 5030 and took support at 4924, before closing at 4943. Today, given the global cues, the Nifty is slated to open on a weak note. Seems like it could be a day full of trading opportunities for both the bulls and the bears.
1) The Elder Ray readings : Bull Power reduced slightly from 48 to 46 also the Bear Power reduced from -80 to -56. This indicates that both are safe in their zone. The Bulls are in the positive and the Bears are in the negative. However, both are weakening. This coupled with the falling ATR, is a first indication of the range tightening and consolidation periods in forthcoming sessions.
2) The 7DMA and the 50DMA have started to flatten out. While the EMAs are still pointing downwards. The stochastics are also right in the middle of the overbought and oversold range.
3) In the above chart, the Bollinger bands are flattening out. The +ADX is converging with the -ADX showing sustainable consolidation ahead of us.
4) Today, the market after opening with down gaps, can try to refill this gap.
5) Considering the above,
a) We will look out for opening longs 20 points above the opening mark, with a SL 20 points below the opening mark and a target of 4910. We will add to our longs only above 4960.
b) Till the Nifty continues to trade below its opening, we will refrain from opening any new positions, as 4800 is a very strong support and opening shorts below 4850 will not be that rewarding as compared to the risk.
For today, 4850 4950 could be the trading range for the Nifty.
Happy trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty Weekly Review Last week, Nifty ended up gaining 75 points against the backdrop of a loss of 200 points in the previous week. During the week, Nifty registered a high of 5034 and a low of 4759, forming a range of about 270 points. Last week also saw the expiry of the Sept 2011 series, amidst high volatility. The whipsaw does not look like slowing down and we presume that the market will witness wild swings during the forthcoming week.In the above chart, MACD is showing decline on weekly basis, whereas Bollinger Bands suggest that the fall will be limited in the immediate future. For the next week, we will be looking at 4850 as the support area and 5030 as a resistance area for the Nifty.
We somehow need to tame this whipsaw, and having an open mind before the trading session and believing that the Nifty can go wild will get us there.
Happy Trading.
Bulls for the Next Week :BAJAJELEC CMAHENDRA IDEA INVENTURE MPHASIS POWERGRID RSSOFTWARE SATYAMCOMP SELAN VARDMNPOLY
Bears for the Next Week :COREEDUTEC DEEPIND GREENPLY HEG HITACHIHOM HOVS LAOPALA MANDHANA ONMOBILE RAJPALAYAM SMSPHARMA SOBHA UBENGG WOCKPHARMA
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty Weekly Review
Last week, Nifty ended up gaining 75 points against the backdrop of a loss of 200 points in the previous week. During the week, Nifty registered a high of 5034 and a low of 4759, forming a range of about 270 points.
Last week also saw the expiry of the Sept 2011 series, amidst high volatility. The whipsaw does not look like slowing down and we presume that the market will witness wild swings during the forthcoming week.
In the above chart, MACD is showing decline on weekly basis, whereas Bollinger Bands suggest that the fall will be limited in the immediate future.
For the next week, we will be looking at 4850 as the support area and 5030 as a resistance area for the Nifty.
We somehow need to tame this whipsaw, and having an open mind before the trading session and believing that the Nifty can go wild will get us there.
Happy Trading.
Bulls for the Next Week :
BAJAJELEC CMAHENDRA IDEA INVENTURE MPHASIS POWERGRID RSSOFTWARE SATYAMCOMP SELAN VARDMNPOLY
Bears for the Next Week :
COREEDUTEC DEEPIND GREENPLY HEG HITACHIHOM HOVS LAOPALA MANDHANA ONMOBILE RAJPALAYAM SMSPHARMA SOBHA UBENGG WOCKPHARMA
For cash market recommendations see our Daily Pre Market calls on NSE
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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.
