AD Code

Friday 2 December 2011

Nifty - 02 Dec 2011 - Two way movement expected

Nifty may see-saw in a profitable range today.

As discussed yesterday, the uptrend continued, with the Nifty opening with a big positive gap. However, as suggested, the Nifty hit the resistances and saw some amount of profit booking, thereby giving away most of the positive gap and closing way below the opening mark. Today, after a subdued opening, the Nifty is expected to swing in a good profitable range. 

1) The Elder Ray readings : Bull Power rises from -28 to +124 Bear Power reduces from -125 to +29. This indicates that now the Bulls have recovered all their lost ground and are safe in the positive territory. Also indicated is that the Bears have given away more ground and are now in the positive zone, which is not favorable for the Bears.

2) The near EMAs  have turned to point upwards. The far EMA is flat from pointing downwards. This is a favorable indication for the Bullish trend to continue.

3) The stochastics are right in the center of the neutral zone, indicating a directionless or a volatile market.



4) In the above chart, the volumes in yesterday's trade have gone down, indicating that the bullish trend has slowed down. Also indicating that the bears have not been able to pull down the nifty to their fullest strength. The MACD is in negative but rising, giving hopes of a rally in coming sessions. The ADX is indicating a strengthening up-move and a weakening down-move. However, it is also suggesting that still the up-move is weaker than the down-move. The neutral ADX is just near the unsustainable levels, indicating that neither move would be sustainable for long.

5) There is still a gap at 4850 to 4920 that needs to be filled up. Gaps in a up-move usually get filled quickly.

6) Considering the above, we have devised our trading plan for the day as under.

a) Around 4885, we will open fresh long positions with a SL of 4845 and a target of 4965. We will add to these long positions only above 4995.

b) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4875. We will add to these short positions only below 4845.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 02 Dec 2011 - Two way movement expected

Nifty may see-saw in a profitable range today.

As discussed yesterday, the uptrend continued, with the Nifty opening with a big positive gap. However, as suggested, the Nifty hit the resistances and saw some amount of profit booking, thereby giving away most of the positive gap and closing way below the opening mark. Today, after a subdued opening, the Nifty is expected to swing in a good profitable range. 

1) The Elder Ray readings : Bull Power rises from -28 to +124 Bear Power reduces from -125 to +29. This indicates that now the Bulls have recovered all their lost ground and are safe in the positive territory. Also indicated is that the Bears have given away more ground and are now in the positive zone, which is not favorable for the Bears.

2) The near EMAs  have turned to point upwards. The far EMA is flat from pointing downwards. This is a favorable indication for the Bullish trend to continue.

3) The stochastics are right in the center of the neutral zone, indicating a directionless or a volatile market.



4) In the above chart, the volumes in yesterday's trade have gone down, indicating that the bullish trend has slowed down. Also indicating that the bears have not been able to pull down the nifty to their fullest strength. The MACD is in negative but rising, giving hopes of a rally in coming sessions. The ADX is indicating a strengthening up-move and a weakening down-move. However, it is also suggesting that still the up-move is weaker than the down-move. The neutral ADX is just near the unsustainable levels, indicating that neither move would be sustainable for long.

5) There is still a gap at 4850 to 4920 that needs to be filled up. Gaps in a up-move usually get filled quickly.

6) Considering the above, we have devised our trading plan for the day as under.

a) Around 4885, we will open fresh long positions with a SL of 4845 and a target of 4965. We will add to these long positions only above 4995.

b) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4875. We will add to these short positions only below 4845.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Thursday 1 December 2011

Nifty - 01 Dec 2011 - Uptrend continues

Nifty may open with a big positive gap. But resistance not far away.

As discussed in our last two posts, the expected up-move came in the Nifty and this up-move may now continue for a while. Today, the Nifty may open with a nice positive gap and may continue the rally towards the next destination of 4930.

1) The Elder Ray readings :  Bull Power reduces from -21 to -28 Bear Power increases from -100 to -125. This indicates that the Bears are still driving the markets, whereas the Bulls have some more ground to cover. Any up-move would meet with stiff resistance around key levels of 4930.

2) The EMAs and the DMAs continue to point downwards, reminding that we are still in a intermediate downtrend, and that this could as well be a up-move within a downtrend. 

3) The stochastics are in the neutral territory and are pointing flat, indicating that any trend would meet opposing forces frequently.



4) In the above chart, the volumes have spiked up in yesterday's up-move, suggesting a stronger opening of the markets today. Global cues also support this opening with positive gap. However, the ADX is suggesting otherwise, and the MACD is also indicating that markets are still in a downtrend.

5) Considering the above, we have devised our trading plan for the day as under.

a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4840. We will add to these short positions only below 4810.

b) Around 4820, we will open fresh long positions with a SL of 4780 and a target of 4910. We will add to these long positions only above 4960.

c) We will book profits in our overnight long positions at around 4890 and avoid re-entry for overnight positions.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 01 Dec 2011 - Uptrend continues

Nifty may open with a big positive gap. But resistance not far away.

As discussed in our last two posts, the expected up-move came in the Nifty and this up-move may now continue for a while. Today, the Nifty may open with a nice positive gap and may continue the rally towards the next destination of 4930.

1) The Elder Ray readings :  Bull Power reduces from -21 to -28 Bear Power increases from -100 to -125. This indicates that the Bears are still driving the markets, whereas the Bulls have some more ground to cover. Any up-move would meet with stiff resistance around key levels of 4930.

2) The EMAs and the DMAs continue to point downwards, reminding that we are still in a intermediate downtrend, and that this could as well be a up-move within a downtrend. 

3) The stochastics are in the neutral territory and are pointing flat, indicating that any trend would meet opposing forces frequently.



4) In the above chart, the volumes have spiked up in yesterday's up-move, suggesting a stronger opening of the markets today. Global cues also support this opening with positive gap. However, the ADX is suggesting otherwise, and the MACD is also indicating that markets are still in a downtrend.

5) Considering the above, we have devised our trading plan for the day as under.

a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4840. We will add to these short positions only below 4810.

b) Around 4820, we will open fresh long positions with a SL of 4780 and a target of 4910. We will add to these long positions only above 4960.

c) We will book profits in our overnight long positions at around 4890 and avoid re-entry for overnight positions.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Wednesday 30 November 2011

Nifty - 30 Nov 2011 - Upmove expected

Nifty is near key support levels and may stage a bounce back soon.

Yesterday, we had mentioned that the up-move would continue for a while. However, the Bulls lacked the strength to stage any follow up buying and the Nifty could not sustain the positive opening, and took support at the key level of 4785, before closing at 4805. Today, the Nifty is likely to have a flattish opening, and we expect a positive bias in the market movement.

1) The Elder Ray readings : Bull Power increases from -42 to -21. Bear Power reduces from -134 to -100. This indicates that the bulls are gradually regaining lost ground, and that the bears are a bit off-color although both are in the negative zone yet.

2) The EMAs are reducing their downward gradient, supportive of a small bounce-back. The near EMA is almost flat, suggesting a immediate arrest of the current downtrend.

3) The stochastics are also just touching the oversold zone boundary, and are supportive of a bounce-back.



4) In the above chart, the Nifty has alternating positive and negative closing candles since last 7 sessions, indicating indecision on part of both bulls and bears. The MACD is supportive of a bounce back. Also the ADX is suggesting loss of steam for the downtrend. However, the ADX is also suggesting that the up-move has not gathered enough momentum yet.

5) Considering the above, our trading plan for the day is as under

a) Around 4780, we will open fresh long positions with a SL of 4755 and a target of 4850. We will add to these long positions only above 4875.

b) Around 4865, we will open fresh short positions with a SL of 4885 and a target of 4785. We will add to these short positions only below 4750.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 30 Nov 2011 - Upmove expected

Nifty is near key support levels and may stage a bounce back soon.

Yesterday, we had mentioned that the up-move would continue for a while. However, the Bulls lacked the strength to stage any follow up buying and the Nifty could not sustain the positive opening, and took support at the key level of 4785, before closing at 4805. Today, the Nifty is likely to have a flattish opening, and we expect a positive bias in the market movement.

1) The Elder Ray readings : Bull Power increases from -42 to -21. Bear Power reduces from -134 to -100. This indicates that the bulls are gradually regaining lost ground, and that the bears are a bit off-color although both are in the negative zone yet.

2) The EMAs are reducing their downward gradient, supportive of a small bounce-back. The near EMA is almost flat, suggesting a immediate arrest of the current downtrend.

3) The stochastics are also just touching the oversold zone boundary, and are supportive of a bounce-back.



4) In the above chart, the Nifty has alternating positive and negative closing candles since last 7 sessions, indicating indecision on part of both bulls and bears. The MACD is supportive of a bounce back. Also the ADX is suggesting loss of steam for the downtrend. However, the ADX is also suggesting that the up-move has not gathered enough momentum yet.

5) Considering the above, our trading plan for the day is as under

a) Around 4780, we will open fresh long positions with a SL of 4755 and a target of 4850. We will add to these long positions only above 4875.

b) Around 4865, we will open fresh short positions with a SL of 4885 and a target of 4785. We will add to these short positions only below 4750.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Tuesday 29 November 2011

Nifty - 29 Nov 2011 - Uptrend may continue for a while

Nifty is in a bounce back mode, but supply zone nearing.

We are resuming our trading after a 2 session gap today. The Bulls in the mean time have staged a surprise comeback, as the bears have taken a back seat. Will the bulls be able to follow up? or will the bears strike back. Some technical analysis will clear the smoke.

1) The Elder Ray readings : Bull Power increases from -142 to -42. Bear Power reduces from -216 to -134. This indicates that the Bulls are still in the opponents territory, and their recent gain in strength is not compensated by equal loss in strength by the bears. This gives rise to a belief that the bears may be waiting for an opportune time to strike back.

2) The EMAs have started turning flat from a pointing down direction. The near EMA has turned to pointing upwards now. The DMAs continue to point downwards, indicating that the downtrend is not over yet.

3) The stochastics are just out of the oversold zone now, and are threatening to rise. This is suggestive, that the immediate trend could be upwards, and that the Nifty could rise for a couple of sessions more.



4) In the above chart, the volumes have decreased in yesterday's rise raising suspicion about the sustenance of the uptrend. However, the MACD and the ADX are supporting an uptrend as of now.

5) The market is likely to swing both ways today, after a flat opening.

5) Considering the above, our trading plan for the day is as under

a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4850. We will add to these short positions, only below 4815.

b) Around 4845, we will open fresh long positions with a SL of 4810 and a target of 4925. We will add to these long positions, only above 4955.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 29 Nov 2011 - Uptrend may continue for a while

Nifty is in a bounce back mode, but supply zone nearing.

We are resuming our trading after a 2 session gap today. The Bulls in the mean time have staged a surprise comeback, as the bears have taken a back seat. Will the bulls be able to follow up? or will the bears strike back. Some technical analysis will clear the smoke.

1) The Elder Ray readings : Bull Power increases from -142 to -42. Bear Power reduces from -216 to -134. This indicates that the Bulls are still in the opponents territory, and their recent gain in strength is not compensated by equal loss in strength by the bears. This gives rise to a belief that the bears may be waiting for an opportune time to strike back.

2) The EMAs have started turning flat from a pointing down direction. The near EMA has turned to pointing upwards now. The DMAs continue to point downwards, indicating that the downtrend is not over yet.

3) The stochastics are just out of the oversold zone now, and are threatening to rise. This is suggestive, that the immediate trend could be upwards, and that the Nifty could rise for a couple of sessions more.



4) In the above chart, the volumes have decreased in yesterday's rise raising suspicion about the sustenance of the uptrend. However, the MACD and the ADX are supporting an uptrend as of now.

5) The market is likely to swing both ways today, after a flat opening.

5) Considering the above, our trading plan for the day is as under

a) Around 4920, we will open fresh short positions with a SL of 4955 and a target of 4850. We will add to these short positions, only below 4815.

b) Around 4845, we will open fresh long positions with a SL of 4810 and a target of 4925. We will add to these long positions, only above 4955.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE
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.