Bears still driving the markets, despite a positive close yesterday. As discussed yesterday, the expiry jitters were felt throughout the trading session, before the Nifty recovered due to some short covering in the late trade, to close in the positive zone. Given the global cues today, the Nifty is likely to open with a negative bias. Technical indications show that the Bears still hold their grip on the markets, and the trend is unlikely to reverse in a hurry.1) The Elder Ray readings : Bull Power rises from -194 to -171. Bear Power reduces from -332 to -303. This shows that Bears have given away some ground after a long haul, however, the Bulls have not been able to take full advantage of the opportunity.2) The EMAs continue to point downwards, so are the DMAs too. The EMAs are tending to define the Nifty trading range between 4610 and 4870, which could be quite decisive during the December 11 series.3) The stochastics are still in the oversold zone, and a bounce back cannot be ruled out here.4) In the above chart, Nifty is just about leaving the lower Bollinger Band, which is suggestive of a bounce back. The MACD is also supportive of a bounce back. The ADX is showing loss of momentum in the downtrend. However, the vital strengthening of the uptrend is missing. This suggests that any bounce back will be short-lived and weak.5) Given the above indications, our trading plan for the day is as under,a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4680. We will add to these short positions only below 4640.b) Around 4670, we will open fresh long positions with a SL of 4645 and a target of 4750. We will add to these long positions only above 4800. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Bears still driving the markets, despite a positive close yesterday.
As discussed yesterday, the expiry jitters were felt throughout the trading session, before the Nifty recovered due to some short covering in the late trade, to close in the positive zone. Given the global cues today, the Nifty is likely to open with a negative bias. Technical indications show that the Bears still hold their grip on the markets, and the trend is unlikely to reverse in a hurry.
1) The Elder Ray readings : Bull Power rises from -194 to -171. Bear Power reduces from -332 to -303. This shows that Bears have given away some ground after a long haul, however, the Bulls have not been able to take full advantage of the opportunity.
2) The EMAs continue to point downwards, so are the DMAs too. The EMAs are tending to define the Nifty trading range between 4610 and 4870, which could be quite decisive during the December 11 series.
3) The stochastics are still in the oversold zone, and a bounce back cannot be ruled out here.
4) In the above chart, Nifty is just about leaving the lower Bollinger Band, which is suggestive of a bounce back. The MACD is also supportive of a bounce back. The ADX is showing loss of momentum in the downtrend. However, the vital strengthening of the uptrend is missing. This suggests that any bounce back will be short-lived and weak.
5) Given the above indications, our trading plan for the day is as under,
a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4680. We will add to these short positions only below 4640.
b) Around 4670, we will open fresh long positions with a SL of 4645 and a target of 4750. We will add to these long positions only above 4800.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty downtrend to continue for a while.As discussed in our posts off late, the downtrend on the Nifty continues unabated. However, given that today is expiry day for the current series, the Nifty might be volatile. Also to be noted, is that the technicals are showing no signs of the downtrend losing its steam as yet.1) The Elder Ray readings : Bull Power reduces from -164 to -194. Bear Power rises from -235 to -332. This indicates that the Bulls are out of breath now and that the Bears have really gained a strong grip on the market.2) The EMAs are pointing downwards and are now stacked against the Bulls.3) The stochastics are deep in the oversold zone, and a small bounce back cannot be ruled out.4) In the above chart, the Bollinger Bands are indicating that the downtrend may slowdown from hereon, and the Nifty could stabilize in a narrow range. The ADX is showing a strengthening of the downtrend and is supported by the MACD. However, the fast MACD has just entered the oversold zone.5) Today being expiry day for the current series, our trading plan is comprised entirely to trade options, instead of futures.a) Around 4740, we will buy 4700 put and wait till the last half an hour of trade.b) Around 4620, we will sell 4500 put and wait till the last half an hour of trade.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty downtrend to continue for a while.
As discussed in our posts off late, the downtrend on the Nifty continues unabated. However, given that today is expiry day for the current series, the Nifty might be volatile. Also to be noted, is that the technicals are showing no signs of the downtrend losing its steam as yet.
1) The Elder Ray readings : Bull Power reduces from -164 to -194. Bear Power rises from -235 to -332. This indicates that the Bulls are out of breath now and that the Bears have really gained a strong grip on the market.
2) The EMAs are pointing downwards and are now stacked against the Bulls.
3) The stochastics are deep in the oversold zone, and a small bounce back cannot be ruled out.
4) In the above chart, the Bollinger Bands are indicating that the downtrend may slowdown from hereon, and the Nifty could stabilize in a narrow range. The ADX is showing a strengthening of the downtrend and is supported by the MACD. However, the fast MACD has just entered the oversold zone.
5) Today being expiry day for the current series, our trading plan is comprised entirely to trade options, instead of futures.
a) Around 4740, we will buy 4700 put and wait till the last half an hour of trade.
b) Around 4620, we will sell 4500 put and wait till the last half an hour of trade.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to remain volatile with a downward bias Due to a family marriage, we will not be trading for the day, and hence, we will not be presenting our trading plan for the day.However, our view of downward bias continues.For the day, the Nifty has a support at 4720 and a resistance at 4835.We will be back on the terminals tomorrow onwards. For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to remain volatile with a downward bias
Due to a family marriage, we will not be trading for the day, and hence, we will not be presenting our trading plan for the day.
However, our view of downward bias continues.
For the day, the Nifty has a support at 4720 and a resistance at 4835.
We will be back on the terminals tomorrow onwards.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may see a shortcovering bout. But selling pressure would resume soon. As discussed yesterday, the whipsaw prior to expiry has started. The downtrend in the Nifty may now see some increase in volatility amidst short covering rallies prior to expiry. However, the overall trend still remains downwards and the technicals are still refusing to indicate any trend reversal.1) The Elder Ray readings : Bull Power rises from -182 to -178 Bear Power rises from -260 to -287. This suggests that the Bulls have started regrouping, but the Bears are not relenting and have increased their pressure.2) The EMAs and the DMAs are now all pointing downwards.3) The stochastics are now in the oversold zone since last 5 trading sessions, indicating that a relief rally is well on the cards.4) In the above chart, the MACD and the ADX are both indicating a downward movement on the Nifty. However, the ADX is showing slowing down of the momentum temporarily.5) Considering the above, we have devised our trading plan for the day as under.a) Around 4835, we will open fresh short positions with a SL of 4865 and a target of 4740. We will add to these short positions only below 4710.b) Around 4730, we will open fresh long positions with a SL of 4715 and a target of 4825. We will add to these long positions only above 4860.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may see a shortcovering bout. But selling pressure would resume soon.
As discussed yesterday, the whipsaw prior to expiry has started. The downtrend in the Nifty may now see some increase in volatility amidst short covering rallies prior to expiry. However, the overall trend still remains downwards and the technicals are still refusing to indicate any trend reversal.
1) The Elder Ray readings : Bull Power rises from -182 to -178 Bear Power rises from -260 to -287. This suggests that the Bulls have started regrouping, but the Bears are not relenting and have increased their pressure.
2) The EMAs and the DMAs are now all pointing downwards.
3) The stochastics are now in the oversold zone since last 5 trading sessions, indicating that a relief rally is well on the cards.
4) In the above chart, the MACD and the ADX are both indicating a downward movement on the Nifty. However, the ADX is showing slowing down of the momentum temporarily.
5) Considering the above, we have devised our trading plan for the day as under.
a) Around 4835, we will open fresh short positions with a SL of 4865 and a target of 4740. We will add to these short positions only below 4710.
b) Around 4730, we will open fresh long positions with a SL of 4715 and a target of 4825. We will add to these long positions only above 4860.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Volatility may see a marked increase. But selling pressure to continue on the Nifty As discussed on Friday, the Nifty continued to witness selling pressure throughout the trading session, before marching a bounce-back towards the end. However, the Nifty could not cross the previous day's close and ended in the red despite desperate efforts by the Bulls. Today, given the global cues, the Nifty is likely to have a flat to negative opening. Also, considering the expiry of the current series in this week, the volatility may see a marked increase today.1) The Elder Ray readings : Bull Power reduces from -93 to -182. Bear Power rises from -210 to -260. Indications are that the Bears still have their stranglehold on the Nifty and that the Bulls are grasping to recover lost grounds. 2) The EMAs are pointing downwards, and the near EMA has crossed the near DMA in the downward direction, generating its own fresh sell signal.3) The stochastics are in the oversold zone, but are showing no signs of a pull back yet.4) In the above chart, the MACD and the ADX are continuing to point towards sustainable selling pressure on the Nifty. However, the Bollinger Bands are suggesting a small bounce-back. 5) Much will depend on today's closing values of the Nifty, making today's trade a clue for the direction on the Nifty prior to expiry of the current series.6) Based on the above, our trading plan for the day is as undera) Around 4930, we will open fresh short positions with a SL of 4955 and a target of 4865. We will add to these short positions below 4830. b) Around 4845, we will open fresh long positions with a SL of 4810 and a target of 4930. We will add to these long positions above 4965 only.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Volatility may see a marked increase. But selling pressure to continue on the Nifty
As discussed on Friday, the Nifty continued to witness selling pressure throughout the trading session, before marching a bounce-back towards the end. However, the Nifty could not cross the previous day's close and ended in the red despite desperate efforts by the Bulls. Today, given the global cues, the Nifty is likely to have a flat to negative opening. Also, considering the expiry of the current series in this week, the volatility may see a marked increase today.
1) The Elder Ray readings : Bull Power reduces from -93 to -182. Bear Power rises from -210 to -260. Indications are that the Bears still have their stranglehold on the Nifty and that the Bulls are grasping to recover lost grounds.
2) The EMAs are pointing downwards, and the near EMA has crossed the near DMA in the downward direction, generating its own fresh sell signal.
3) The stochastics are in the oversold zone, but are showing no signs of a pull back yet.
4) In the above chart, the MACD and the ADX are continuing to point towards sustainable selling pressure on the Nifty. However, the Bollinger Bands are suggesting a small bounce-back.
5) Much will depend on today's closing values of the Nifty, making today's trade a clue for the direction on the Nifty prior to expiry of the current series.
6) Based on the above, our trading plan for the day is as under
a) Around 4930, we will open fresh short positions with a SL of 4955 and a target of 4865. We will add to these short positions below 4830.
b) Around 4845, we will open fresh long positions with a SL of 4810 and a target of 4930. We will add to these long positions above 4965 only.
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.
