Nifty may try to close the gap formed at 4850 4915 Two days ago, we had suggested that "a big move may just be round the corner" and that move was set in yesterday's trade. We were fortunate to have foreseen that and were able to ride the fall, making sizable profits in the course. Today, the Nifty is likely to open with a negative gap and may move down to fill the gaps that were formed a few days ago.1) The Elder Ray readings : Bull Power reduces from +151 to +102 Bear Power increases from +84 to -26. Bears have just come back into their own territory, whereas the Bulls have just dipped in their momentum. 2) The near EMAs are turning to point downwards, and the Nifty is trading just below the 13EMA which is at 4948, and this could be the pivot point for now. The Nifty has also breached its 50 DMA which is at 5017 and this could act as a stop loss for any short positions created hereafter.3) The fast stochastics have left the overbought zone and are pointing downwards now. The slow stochastics are still in the overbought zone, indicating weakness for the Nifty.4) In the above chart, the top Bollinger Band continues to fall steeply, indicating weakness. The MACD histogram is in the positive and falling, indicating a fresh sell call. The ADX is also indicating a fresh sell call.5) Considering the above, our trading plan for the day is as undera) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4890. We will add to these short positions only below 4875.b) Around 4880, we will open fresh long positions with a SL of 4850 and a target of 4955. We will add to these long positions only above 5005. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may try to close the gap formed at 4850 4915
Two days ago, we had suggested that "a big move may just be round the corner" and that move was set in yesterday's trade. We were fortunate to have foreseen that and were able to ride the fall, making sizable profits in the course. Today, the Nifty is likely to open with a negative gap and may move down to fill the gaps that were formed a few days ago.
1) The Elder Ray readings : Bull Power reduces from +151 to +102 Bear Power increases from +84 to -26. Bears have just come back into their own territory, whereas the Bulls have just dipped in their momentum.
2) The near EMAs are turning to point downwards, and the Nifty is trading just below the 13EMA which is at 4948, and this could be the pivot point for now. The Nifty has also breached its 50 DMA which is at 5017 and this could act as a stop loss for any short positions created hereafter.
3) The fast stochastics have left the overbought zone and are pointing downwards now. The slow stochastics are still in the overbought zone, indicating weakness for the Nifty.
4) In the above chart, the top Bollinger Band continues to fall steeply, indicating weakness. The MACD histogram is in the positive and falling, indicating a fresh sell call. The ADX is also indicating a fresh sell call.
5) Considering the above, our trading plan for the day is as under
a) Around 4975, we will open fresh short positions with a SL of 5005 and a target of 4890. We will add to these short positions only below 4875.
b) Around 4880, we will open fresh long positions with a SL of 4850 and a target of 4955. We will add to these long positions only above 5005.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty likely to trade in a confined range yet again in a two way swinging market. As discussed yesterday, the Nifty continued its range-bound trade but maintained a positive bias. On the charts, the Nifty has yet again formed a "Doji" indicating indecision in the minds of market participants. This trend seems to continue today as well, giving a good chance for traders to earn in both swings.1) The Elder Ray readings : Bull Power increases from +126 to +151 Bear Power reduces +73 to +84. This indicates that a bullish rally might be in the offing in a few trading sessions. Also supports the positive bias in this volatile market.2) The EMAs continue to point upwards, indicating sustainability to the current positive bias. The Nifty continues to trade above its 50 DMA which is currently at 5016. 3) The stochastics are well in the overbought zone, and hence indicate that the headroom for a big rally upwards is limited.4) In the above chart, the upper Bollinger Band is falling steeply, indicating falling targets for any up-move. The MACD is rising, indicating a positive bias to the markets. The ADX is also supporting the positive bias, but indicates suspicion on the sustainability of the up-move.5) Considering the above, we have devised our trading plan for the day as undera) Around 5020, we will open fresh long positions with a SL of 4980 and a target of 5090. We will add to these long positions only above 5120.b) Around 5100, we will open fresh short positions with a SL of 5130 and a target of 5010. We will add to these short positions only below 4975.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty likely to trade in a confined range yet again in a two way swinging market.
As discussed yesterday, the Nifty continued its range-bound trade but maintained a positive bias. On the charts, the Nifty has yet again formed a "Doji" indicating indecision in the minds of market participants. This trend seems to continue today as well, giving a good chance for traders to earn in both swings.
1) The Elder Ray readings : Bull Power increases from +126 to +151 Bear Power reduces +73 to +84. This indicates that a bullish rally might be in the offing in a few trading sessions. Also supports the positive bias in this volatile market.
2) The EMAs continue to point upwards, indicating sustainability to the current positive bias. The Nifty continues to trade above its 50 DMA which is currently at 5016.
3) The stochastics are well in the overbought zone, and hence indicate that the headroom for a big rally upwards is limited.
4) In the above chart, the upper Bollinger Band is falling steeply, indicating falling targets for any up-move. The MACD is rising, indicating a positive bias to the markets. The ADX is also supporting the positive bias, but indicates suspicion on the sustainability of the up-move.
5) Considering the above, we have devised our trading plan for the day as under
a) Around 5020, we will open fresh long positions with a SL of 4980 and a target of 5090. We will add to these long positions only above 5120.
b) Around 5100, we will open fresh short positions with a SL of 5130 and a target of 5010. We will add to these short positions only below 4975.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may trade in a confined range with a positive bias. As discussed in our last post, the Nifty continued with its up-move amidst profit taking bouts. The same trend may continue for a few sessions from now on. However, a big move may just be round the corner, and we intend to be ready for that by waiting patiently and observing "No Trading" zones. A bit of technical analysis will clear our observation.1) The Elder Ray readings : Bull Power reduces from +152 to +126 Bear Power also reduces from +8 to +73. This clearly shows that both the Bulls and the Bears have lost strength, and hence, the market is directionless without any driver. This raises the chances of a big move in either direction within a few trading sessions, as one of them will take charge of the markets.2) The EMAs are pointing upwards and the nifty is trading above its 50 DMA which is at 5018. This will be the pivot point to watch.3) The fast stochastics are now well in the overbought zone. However, the slow stochastics are hovering just below the overbought zone, indicating room for an up-move still.4) In the above chart, the Nifty has formed a "Doji" after a significant up-move, indicating that a change in trend might be on the cards. The volumes in the last trading session have depleted, showing lack of interest by trading participants in the market. The MACD is supportive of a up-move, however the ADX is indicating loss of steam for the up-move and lack of strength for the down-move.5) Considering the above, our trading plan for the day is as undera) Around 5025, we will open fresh long positions with a SL of 5010 and a target of 5070. We will add to these long positions only above 5090.b) Around 5075, we will open fresh short positions with a SL of 5095 and a target of 5020. We will add to these short positions only below 5000.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may trade in a confined range with a positive bias.
As discussed in our last post, the Nifty continued with its up-move amidst profit taking bouts. The same trend may continue for a few sessions from now on. However, a big move may just be round the corner, and we intend to be ready for that by waiting patiently and observing "No Trading" zones. A bit of technical analysis will clear our observation.
1) The Elder Ray readings : Bull Power reduces from +152 to +126 Bear Power also reduces from +8 to +73. This clearly shows that both the Bulls and the Bears have lost strength, and hence, the market is directionless without any driver. This raises the chances of a big move in either direction within a few trading sessions, as one of them will take charge of the markets.
2) The EMAs are pointing upwards and the nifty is trading above its 50 DMA which is at 5018. This will be the pivot point to watch.
3) The fast stochastics are now well in the overbought zone. However, the slow stochastics are hovering just below the overbought zone, indicating room for an up-move still.
4) In the above chart, the Nifty has formed a "Doji" after a significant up-move, indicating that a change in trend might be on the cards. The volumes in the last trading session have depleted, showing lack of interest by trading participants in the market. The MACD is supportive of a up-move, however the ADX is indicating loss of steam for the up-move and lack of strength for the down-move.
5) Considering the above, our trading plan for the day is as under
a) Around 5025, we will open fresh long positions with a SL of 5010 and a target of 5070. We will add to these long positions only above 5090.
b) Around 5075, we will open fresh short positions with a SL of 5095 and a target of 5020. We will add to these short positions only below 5000.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may continue the up-move with some bouts of profit taking. As discussed in our last post, the two way move did not come out, and the nifty continued to rise unabated throughout the entire session on Friday, to close near its high. Today, given the global cues, the Nifty is expected to open flat and stay with a positive bias, with a few bouts of profit taking.1) The Elder Ray readings : Bull Power rises from +124 to +152 Bear Power also rises from +29 to +8. Indicating that the run away rally may hit stumbling blocks ahead, however, the bullish trend may continue for a while now.2) The EMAs are now pointing upwards, and are supportive of the current bullish trend. Also the Nifty is trading above 5020 its 50DMA, which could play as a good immediate support for the markets.3) The fast stochastics are nearing the overbought zone now, but the slow stochastics are trailing way behind, indicating that the bullish trend might continue, but can slow down a bit.4) In the above chart, the MACD is in the negative and rising. The histogram has just turned into positive, and is supporting the up-move on the nifty. The ADX has generated a fresh buy signal, but the neutral ADX is on top and falling, indicating that the fresh buy signal may not last long.5) Considering the above, our trading plan for the day will be as undera) Around 5025, we will open fresh long positions with a SL of 5005 and a target of 5090. We will add to these long positions only above 5115.b) Around 5140, we will open fresh short positions with a SL of 5170 and a target of 5015. We will add to these short positions only below 5000.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may continue the up-move with some bouts of profit taking.
As discussed in our last post, the two way move did not come out, and the nifty continued to rise unabated throughout the entire session on Friday, to close near its high. Today, given the global cues, the Nifty is expected to open flat and stay with a positive bias, with a few bouts of profit taking.
1) The Elder Ray readings : Bull Power rises from +124 to +152 Bear Power also rises from +29 to +8. Indicating that the run away rally may hit stumbling blocks ahead, however, the bullish trend may continue for a while now.
2) The EMAs are now pointing upwards, and are supportive of the current bullish trend. Also the Nifty is trading above 5020 its 50DMA, which could play as a good immediate support for the markets.
3) The fast stochastics are nearing the overbought zone now, but the slow stochastics are trailing way behind, indicating that the bullish trend might continue, but can slow down a bit.
4) In the above chart, the MACD is in the negative and rising. The histogram has just turned into positive, and is supporting the up-move on the nifty. The ADX has generated a fresh buy signal, but the neutral ADX is on top and falling, indicating that the fresh buy signal may not last long.
5) Considering the above, our trading plan for the day will be as under
a) Around 5025, we will open fresh long positions with a SL of 5005 and a target of 5090. We will add to these long positions only above 5115.
b) Around 5140, we will open fresh short positions with a SL of 5170 and a target of 5015. We will add to these short positions only below 5000.
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.
