Use today's gap up opening to book profits and create new short positions. As discussed yesterday, the Nifty traded in a tight range and found support at 5200 with a sharp bounce back to 5266. Today, given the global cues, the Nifty is likely to open with a large gap up. As seen in recent past, up gaps can continue to remain unstable and get filled soon. We will be on look out for shorting opportunities around 5380 5400.1) The Elder Ray readings :Bull Power reduces from +117 to +87 Bear Power increases from +22 to +7, indicating that the Bulls have yet again loosened their grip and that the Bears have been gaining strength all the while. However, the Bears have lacked that "one last" push that would have brought them into the negative zone.2) The EMAs continue to point upwards, and now the 100 DMA also is showing inclination to support an up-move. However, the 200 DMA is still pointing downwards, reminding us that this still is an up-move within a larger downtrend.3) The stochastics are just below the overbought zone, indicating that any up-move from here might be capped.4) In the above chart, the MACD is showing divergence with the worm climbing up while the histogram is falling steadily. The ADX shows that the up-move is losing momentum. However, the volumes are on the rise again.5) Considering the above, our trading plan is based on the premise that the Nifty has a major support at 5220 and a major resistance at 5380.a) Around 5365 we will open fresh short positions with a SL of 5390 and a target of 5260. We will add to these short positions only below 5210 for a target of 5175.b) Around 5250 we will open fresh long positions with a SL of 5210 and a target of 5365. We will add to these positions only above 5400 for a target of 5450.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Use today's gap up opening to book profits and create new short positions.
As discussed yesterday, the Nifty traded in a tight range and found support at 5200 with a sharp bounce back to 5266. Today, given the global cues, the Nifty is likely to open with a large gap up. As seen in recent past, up gaps can continue to remain unstable and get filled soon. We will be on look out for shorting opportunities around 5380 5400.
1) The Elder Ray readings :Bull Power reduces from +117 to +87 Bear Power increases from +22 to +7, indicating that the Bulls have yet again loosened their grip and that the Bears have been gaining strength all the while. However, the Bears have lacked that "one last" push that would have brought them into the negative zone.
2) The EMAs continue to point upwards, and now the 100 DMA also is showing inclination to support an up-move. However, the 200 DMA is still pointing downwards, reminding us that this still is an up-move within a larger downtrend.
3) The stochastics are just below the overbought zone, indicating that any up-move from here might be capped.
4) In the above chart, the MACD is showing divergence with the worm climbing up while the histogram is falling steadily. The ADX shows that the up-move is losing momentum. However, the volumes are on the rise again.
5) Considering the above, our trading plan is based on the premise that the Nifty has a major support at 5220 and a major resistance at 5380.
a) Around 5365 we will open fresh short positions with a SL of 5390 and a target of 5260. We will add to these short positions only below 5210 for a target of 5175.
b) Around 5250 we will open fresh long positions with a SL of 5210 and a target of 5365. We will add to these positions only above 5400 for a target of 5450.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Range bound Nifty with depleting volumes needs to be traded cautiously. As discussed yesterday, the downtrend in the Nifty continued, and the Nifty took support just below our indicated levels and found resistance at our indicated levels too. The Nifty traded between 5205 and 5300 before closing at 5258 which was our first resistance as indicated yesterday. For today, again the same range will act important supports and resistances.1) The Elder Ray readings : Bull Power reduces from +140 to +117 Bear Power increases from +68 to +22, indicating that the Bulls are losing their grip on the Nifty and that the Bears are continuing to gain strength. However, the Bears need that extra effort to come into their negative zone. 2) The EMAs continue to point upwards and are supportive of an up-trend. The 50 DMA also is indicating of a up move but the 100 and 200 DMAs are pointing downwards. This reinforces our belief in a range bound trade in the coming sessions.3) The stochastics have moved out of the overbought zone and are pointing downwards. However, they are still far from the oversold zone, indicating that the upside to this move may be capped. 4) In the above chart, the MACD is pointing upwards, the Bollinger Bands are expanding, indicating a positive bias. However, the ADX is showing that the up-move is losing momentum and the down trend is gaining strength. 5) We still believe that neither the Bulls nor Bears are going to give up so easily, and that the Nifty will still find support at 5210 5175 zone and also it will find resistance near 5320. 6) Based on the above, our trading plan for the day is as undera) Around 5310 we will open short positions with a SL of 5320 and a target of 5210. We will add to these short positions only below 5180.b) Around 5200 we will open long positions with a SL of 5170 and a target of 5300. We will add to these long positions only above 5350.c) We will trail our stop loss in the direction of profits as the moves can be wildly volatile, and the markets can provide multiple entries at the same levels during the day. Happy Trading !!!For cash market recommendations see our Daily Pre Market calls on NSE
Range bound Nifty with depleting volumes needs to be traded cautiously.
As discussed yesterday, the downtrend in the Nifty continued, and the Nifty took support just below our indicated levels and found resistance at our indicated levels too. The Nifty traded between 5205 and 5300 before closing at 5258 which was our first resistance as indicated yesterday. For today, again the same range will act important supports and resistances.
1) The Elder Ray readings : Bull Power reduces from +140 to +117 Bear Power increases from +68 to +22, indicating that the Bulls are losing their grip on the Nifty and that the Bears are continuing to gain strength. However, the Bears need that extra effort to come into their negative zone.
2) The EMAs continue to point upwards and are supportive of an up-trend. The 50 DMA also is indicating of a up move but the 100 and 200 DMAs are pointing downwards. This reinforces our belief in a range bound trade in the coming sessions.
3) The stochastics have moved out of the overbought zone and are pointing downwards. However, they are still far from the oversold zone, indicating that the upside to this move may be capped.
4) In the above chart, the MACD is pointing upwards, the Bollinger Bands are expanding, indicating a positive bias. However, the ADX is showing that the up-move is losing momentum and the down trend is gaining strength.
5) We still believe that neither the Bulls nor Bears are going to give up so easily, and that the Nifty will still find support at 5210 5175 zone and also it will find resistance near 5320.
6) Based on the above, our trading plan for the day is as under
a) Around 5310 we will open short positions with a SL of 5320 and a target of 5210. We will add to these short positions only below 5180.
b) Around 5200 we will open long positions with a SL of 5170 and a target of 5300. We will add to these long positions only above 5350.
c) We will trail our stop loss in the direction of profits as the moves can be wildly volatile, and the markets can provide multiple entries at the same levels during the day.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may synchronize with the global turmoil and resume its downtrend As discussed yesterday, the Nifty opened below 5320 and then tried to fill the gaps till 5220 showing a low of 5238 before shutting shop at 5258. Today, again given the global cues, the Nifty is likely to open with a gap down and likely to test the supports at 5210 and 5175. On the up side, the first resistance will be at 5258 and then at 5320.1) The Elder Ray readings : Bull Power reduces from +204 to +140 Bear Power increases from +159 to +68. This indicates that the Bulls are losing their grip while the Bears are gaining strength. However, the Bears are still in the positive zone and this makes them vulnerable.2) The EMAs have started showing initial signs for weakness and are just about to flatten out. The 100 and 200 DMAs are still pointing downwards.3) The stochastics are confirming the downtrend and are just about to leave the overbought zone.4) In the above chart, volumes are depleting in the current fall in prices, indicating that the current fall is not strong enough to continue for long. The MACD is rising and is in the positive. The ADX is indicating a fall in the uptrend and a rise in the downtrend. Yet the +ADX is still above the -ADX and a fresh sell signal has not yet emanated. 5) Nifty has strong supports at 5210 and 5175, from where a bounce back is possible.6) Considering the above, we have devised our trading plan for the day as under.a) Near 5210 we will open fresh long positions with a SL of 5190 and a target of 5260. We will add to these long positions only above 5290.b) Around 5265 we will open fresh short positions with a SL of 5285 and a target of 5210. We will add to these short positions only below 5175.c) We will take the opportunities as and when they come and we will trail our stop loss to preserve whatever profits are generated.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may synchronize with the global turmoil and resume its downtrend
As discussed yesterday, the Nifty opened below 5320 and then tried to fill the gaps till 5220 showing a low of 5238 before shutting shop at 5258. Today, again given the global cues, the Nifty is likely to open with a gap down and likely to test the supports at 5210 and 5175. On the up side, the first resistance will be at 5258 and then at 5320.
1) The Elder Ray readings : Bull Power reduces from +204 to +140 Bear Power increases from +159 to +68. This indicates that the Bulls are losing their grip while the Bears are gaining strength. However, the Bears are still in the positive zone and this makes them vulnerable.
2) The EMAs have started showing initial signs for weakness and are just about to flatten out. The 100 and 200 DMAs are still pointing downwards.
3) The stochastics are confirming the downtrend and are just about to leave the overbought zone.
4) In the above chart, volumes are depleting in the current fall in prices, indicating that the current fall is not strong enough to continue for long. The MACD is rising and is in the positive. The ADX is indicating a fall in the uptrend and a rise in the downtrend. Yet the +ADX is still above the -ADX and a fresh sell signal has not yet emanated.
5) Nifty has strong supports at 5210 and 5175, from where a bounce back is possible.
6) Considering the above, we have devised our trading plan for the day as under.
a) Near 5210 we will open fresh long positions with a SL of 5190 and a target of 5260. We will add to these long positions only above 5290.
b) Around 5265 we will open fresh short positions with a SL of 5285 and a target of 5210. We will add to these short positions only below 5175.
c) We will take the opportunities as and when they come and we will trail our stop loss to preserve whatever profits are generated.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may fill recent gaps between 5320 and 5220 As discussed yesterday, the Nifty was in the overbought zone and remained under pressure throughout the trading session. Today, given the global cues, the Nifty is likely to open below 5320 and may try to fill the gap till 5220. 1) The Elder Ray readings : Bull Power reduced from +272 to +204 Bear Power increased from +195 to +159. Indicating that Bulls are stopping to catch some breath and the Bears are still in the opponents territory. Any dips should be used to open long positions.2) The EMAs are still pointing northwards with a unsustainable gradient. A cooling off on the Nifty may be round the corner. However, the immediate trend is still upwards.3) The stochastics indicate Nifty is still in overbought zone and ready to dip down any moment now.4) In the above chart, the MACD is truly in the positive zone and pointing upwards. The ADX indicates that the uptrend is slowing down. However, it also indicates that the downtrend has no momentum as of now.5) Considering the above, we have devised our trading plan for the day as undera) Around 5210 we will open fresh long positions with a SL of 5180 and a target of 5310. We will add to these long positions only above 5360.b) Around 5320 we will open fresh short positions with a SL of 5355 and a target of 5220. We will add to these short positions only below 5175.c) We will patiently wait for our start prices to arrive. When in profit, we will trail our stop loss so as to preserve our positions.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may fill recent gaps between 5320 and 5220
As discussed yesterday, the Nifty was in the overbought zone and remained under pressure throughout the trading session. Today, given the global cues, the Nifty is likely to open below 5320 and may try to fill the gap till 5220.
1) The Elder Ray readings : Bull Power reduced from +272 to +204 Bear Power increased from +195 to +159. Indicating that Bulls are stopping to catch some breath and the Bears are still in the opponents territory. Any dips should be used to open long positions.
2) The EMAs are still pointing northwards with a unsustainable gradient. A cooling off on the Nifty may be round the corner. However, the immediate trend is still upwards.
3) The stochastics indicate Nifty is still in overbought zone and ready to dip down any moment now.
4) In the above chart, the MACD is truly in the positive zone and pointing upwards. The ADX indicates that the uptrend is slowing down. However, it also indicates that the downtrend has no momentum as of now.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 5210 we will open fresh long positions with a SL of 5180 and a target of 5310. We will add to these long positions only above 5360.
b) Around 5320 we will open fresh short positions with a SL of 5355 and a target of 5220. We will add to these short positions only below 5175.
c) We will patiently wait for our start prices to arrive. When in profit, we will trail our stop loss so as to preserve our positions.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has come up too far too fast. A correction in the offing ? As discussed in our last post, the Nifty successfully closed the gap between 5220 and 5320 and traded well above those values to close at 5361 before showing a high of 5400. While doing so, it has now come up too far too fast. Not only that, the same gap which was left in the downward journey, is still left open in the upward journey. 1) The Elder Ray readings : Bull Power rises from +131 to +272. Bear Power reduces from +107 to +195. Indicating that the Bulls are in control and that the Bears are now looking miserable. The Bull phase can continue for a couple of trading sessions.2) The EMAs are now pointing almost vertical indicating almost no scope for a further increase in rate of growth in the Nifty. This can also be taken as a warning signal for a slowdown in the upward movement. The 100 and 200 DMAs are still pointing downwards.3) The stochastics are still in the overbought zone, and indicate a cooling off in the Nifty just round the corner.4) In the above chart, the Nifty has broken through the upper Bollinger Band, indicating a reversal is in the offing. The ADX is indicating a up-move that will become unsustainable if it continues to grow with the current speed. The volumes have increased.5) Looking at the above considerations, we have devised our trading plan for the day as under.a) Around 5335, we will open fresh long positions with a SL of 5320 and a target of 5400. We will add to these long positions above 5430 only.b) Around 5410, we will open fresh short positions with a SL of 5425 and a target of 5320. We will add to these short positions only below 5300.c) We will wait patiently for our start prices to arrive and would avoid trading the Nifty till then.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty has come up too far too fast. A correction in the offing ?
As discussed in our last post, the Nifty successfully closed the gap between 5220 and 5320 and traded well above those values to close at 5361 before showing a high of 5400. While doing so, it has now come up too far too fast. Not only that, the same gap which was left in the downward journey, is still left open in the upward journey.
1) The Elder Ray readings : Bull Power rises from +131 to +272. Bear Power reduces from +107 to +195. Indicating that the Bulls are in control and that the Bears are now looking miserable. The Bull phase can continue for a couple of trading sessions.
2) The EMAs are now pointing almost vertical indicating almost no scope for a further increase in rate of growth in the Nifty. This can also be taken as a warning signal for a slowdown in the upward movement. The 100 and 200 DMAs are still pointing downwards.
3) The stochastics are still in the overbought zone, and indicate a cooling off in the Nifty just round the corner.
4) In the above chart, the Nifty has broken through the upper Bollinger Band, indicating a reversal is in the offing. The ADX is indicating a up-move that will become unsustainable if it continues to grow with the current speed. The volumes have increased.
5) Looking at the above considerations, we have devised our trading plan for the day as under.
a) Around 5335, we will open fresh long positions with a SL of 5320 and a target of 5400. We will add to these long positions above 5430 only.
b) Around 5410, we will open fresh short positions with a SL of 5425 and a target of 5320. We will add to these short positions only below 5300.
c) We will wait patiently for our start prices to arrive and would avoid trading the Nifty till then.
Happy Trading !!!
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.
