AD Code

Friday 16 December 2011

Nifty - 16 Dec 2011 - Markets in limbo before monetary policy

RBI monetary policy may stoke volatility in a already falling market.

As discussed yesterday, the selling spree continued on the Nifty, but as it approached key support levels, we saw a bounce back, which again met with selling and was not able to cross our stop loss levels. Today, with the RBI announcing its monetary policy, the markets may see whipsawing volatility. 

1) The Elder Ray readings : Bull Power reduces from -37 to -89 Bear Power rises from -126 to -184, indicating that the Bears have now regained their control and again pushed down the bulls below water. 

2) The EMAs and the DMAs continue to hint at the downtrend continuing.

3) The stochastics are almost touching the oversold zone, indicating that there is still room for downside to the Nifty.



4) In the above chart, the MACD is signalling a sell and the ADX is supporting this sell signal.  The Bollinger Bands are also stretching downwards, indicating a fall in the coming sessions on the Nifty.

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

a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4695. We will add to these short positions only below 4665.

b) Around 4690, we will open fresh long positions with a SL of 4660 and a target of 4750. We will add to these long positions only above 4805. 

Happy Trading !!! 

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

Nifty - 16 Dec 2011 - Markets in limbo before monetary policy

RBI monetary policy may stoke volatility in a already falling market.

As discussed yesterday, the selling spree continued on the Nifty, but as it approached key support levels, we saw a bounce back, which again met with selling and was not able to cross our stop loss levels. Today, with the RBI announcing its monetary policy, the markets may see whipsawing volatility. 

1) The Elder Ray readings : Bull Power reduces from -37 to -89 Bear Power rises from -126 to -184, indicating that the Bears have now regained their control and again pushed down the bulls below water. 

2) The EMAs and the DMAs continue to hint at the downtrend continuing.

3) The stochastics are almost touching the oversold zone, indicating that there is still room for downside to the Nifty.



4) In the above chart, the MACD is signalling a sell and the ADX is supporting this sell signal.  The Bollinger Bands are also stretching downwards, indicating a fall in the coming sessions on the Nifty.

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

a) Around 4770, we will open fresh short positions with a SL of 4795 and a target of 4695. We will add to these short positions only below 4665.

b) Around 4690, we will open fresh long positions with a SL of 4660 and a target of 4750. We will add to these long positions only above 4805. 

Happy Trading !!! 

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

Thursday 15 December 2011

Nifty - 15 Dec 2011 - Selling spree on the bourses

Nifty likely to spiral downwards, but is approaching key support levels.

As discussed yesterday, selling continued unabated in the markets, and the Nifty closed in the red at 4763 after hitting our resistance levels. Today, given the global cues, the Nifty is likely to open in the negative and is likely to touch its recent lows of around 4650, where buying might come in.

1) The Elder Ray readings : Bull Power increases from -71 to -37 Bear Power reduces from -167 to -126. This indicates that the Bears are still in control, but are losing some of their strength and the Bulls are trying to claw back to their own territory.

2) The EMAs continue to point downwards and the Nifty is trading below all its key DMAs, indicating continuation of the downtrend.

3) The stochastics are pointing downwards, and are still in the neutral zone, indicating there is still room for a fall downwards.



4) In the above chart, the volumes have risen in yesterday's fall, indicating continuation of the selling. The MACD histogram has now gone in the negative, whereas the MACD trend line is giving out a fresh sell signal. The ADX is indicating loss in the selling strength, which suggests that selling might come to an end within a couple of sessions from now.

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

a) Around 4650, we will open fresh long positions with a SL of 4620 and a target of 4820. We will add to these long positions only above 4855.

b) Below 4750, we will open fresh short positions with a SL of  4785 and a target of 4650. We will add to these short positions only below 4610.

Happy Trading !!! 

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

Nifty - 15 Dec 2011 - Selling spree on the bourses

Nifty likely to spiral downwards, but is approaching key support levels.

As discussed yesterday, selling continued unabated in the markets, and the Nifty closed in the red at 4763 after hitting our resistance levels. Today, given the global cues, the Nifty is likely to open in the negative and is likely to touch its recent lows of around 4650, where buying might come in.

1) The Elder Ray readings : Bull Power increases from -71 to -37 Bear Power reduces from -167 to -126. This indicates that the Bears are still in control, but are losing some of their strength and the Bulls are trying to claw back to their own territory.

2) The EMAs continue to point downwards and the Nifty is trading below all its key DMAs, indicating continuation of the downtrend.

3) The stochastics are pointing downwards, and are still in the neutral zone, indicating there is still room for a fall downwards.



4) In the above chart, the volumes have risen in yesterday's fall, indicating continuation of the selling. The MACD histogram has now gone in the negative, whereas the MACD trend line is giving out a fresh sell signal. The ADX is indicating loss in the selling strength, which suggests that selling might come to an end within a couple of sessions from now.

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

a) Around 4650, we will open fresh long positions with a SL of 4620 and a target of 4820. We will add to these long positions only above 4855.

b) Below 4750, we will open fresh short positions with a SL of  4785 and a target of 4650. We will add to these short positions only below 4610.

Happy Trading !!! 

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

Wednesday 14 December 2011

Nifty - 14 Dec 2011 - Selling to continue unabated

Nifty may continue to slide down

As discussed yesterday, the Nifty tried to retest the recent lows, before staging a bounce back in the last half an hour of trade. Even after that smart looking technical bounce back, the markets are still in the bearish control, and today, after a negative opening, selling is likely to continue unabated.

1) The Elder Ray readings : Bull Power reduces from -1 to -71 Bear Power rises from -156 to -167, indicating that the Bears are still driving the markets, and that the Bulls have now really lost their grounds.

2) The EMAs continue to point downwards as also are the DMAs, indicating that we are still in the downtrend.

3) The stochastics too are in the neutral zone and are pointing downwards, indicating a downtrend as well.



4) In the above chart, the MACD continues to go down suggesting bearishness for the nifty. Also the ADX still is holding its sell signal.

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

a) Below 4830, we will open fresh short positions with a SL of 4855 and a target of 4730. We will add to these short positions only below 4700.

b) We will refrain from opening long positions for the day at least.

Happy Trading !!! 

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

Nifty - 14 Dec 2011 - Selling to continue unabated

Nifty may continue to slide down

As discussed yesterday, the Nifty tried to retest the recent lows, before staging a bounce back in the last half an hour of trade. Even after that smart looking technical bounce back, the markets are still in the bearish control, and today, after a negative opening, selling is likely to continue unabated.

1) The Elder Ray readings : Bull Power reduces from -1 to -71 Bear Power rises from -156 to -167, indicating that the Bears are still driving the markets, and that the Bulls have now really lost their grounds.

2) The EMAs continue to point downwards as also are the DMAs, indicating that we are still in the downtrend.

3) The stochastics too are in the neutral zone and are pointing downwards, indicating a downtrend as well.



4) In the above chart, the MACD continues to go down suggesting bearishness for the nifty. Also the ADX still is holding its sell signal.

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

a) Below 4830, we will open fresh short positions with a SL of 4855 and a target of 4730. We will add to these short positions only below 4700.

b) We will refrain from opening long positions for the day at least.

Happy Trading !!! 

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

Tuesday 13 December 2011

Nifty - 13 Dec 2011 - Retest of lows likely today

Nifty may test recent lows of 4650 today and stage a bounce back from there

As discussed yesterday, it was sell on rise all through the trading session. Every time the Nifty tried to recover, it was punched down heavily by the Bears, and it closed near its low at 4765. Today, given the global cues, the Nifty is likely to open in the negative, and as said above, it is likely to retest its recent lows of 4650.

1) The Elder Ray readings : Bull Power rises from -18 to -1 Bear Power also rises from -94 to -156. This indicates that the Bears are now in full control of the market and that the Bulls, who are trying to claw back to their territory, are still having their heads down.

2) The EMAs are pointing downwards and the DMAs are stacked in favour of the Bears.

3) The stochastics are in the neutral zone and are pointing downwards, indicating there is still further room for a down side to the Nifty.



4) In the above chart, the volumes in yesterday's fall have depleted, indicating that the fall may be arrested for a while. However, the MACD histogram is about to go in the negative and the MACD trend line is threatening to give out a fresh sell signal. The ADX is also showing a rise in the down trend, but is nearing unsustainable levels.

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

a) Around 4780, we will open fresh short positions, with a SL of 4810 and a target of 4680. We will add to these short positions only below 4655.

b) Around 4670, we will open fresh long positions, with a SL of 4655 and a target of 4760. We will add to these long positions only above 4810.

Happy Trading !!! 

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

Nifty - 13 Dec 2011 - Retest of lows likely today

Nifty may test recent lows of 4650 today and stage a bounce back from there

As discussed yesterday, it was sell on rise all through the trading session. Every time the Nifty tried to recover, it was punched down heavily by the Bears, and it closed near its low at 4765. Today, given the global cues, the Nifty is likely to open in the negative, and as said above, it is likely to retest its recent lows of 4650.

1) The Elder Ray readings : Bull Power rises from -18 to -1 Bear Power also rises from -94 to -156. This indicates that the Bears are now in full control of the market and that the Bulls, who are trying to claw back to their territory, are still having their heads down.

2) The EMAs are pointing downwards and the DMAs are stacked in favour of the Bears.

3) The stochastics are in the neutral zone and are pointing downwards, indicating there is still further room for a down side to the Nifty.



4) In the above chart, the volumes in yesterday's fall have depleted, indicating that the fall may be arrested for a while. However, the MACD histogram is about to go in the negative and the MACD trend line is threatening to give out a fresh sell signal. The ADX is also showing a rise in the down trend, but is nearing unsustainable levels.

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

a) Around 4780, we will open fresh short positions, with a SL of 4810 and a target of 4680. We will add to these short positions only below 4655.

b) Around 4670, we will open fresh long positions, with a SL of 4655 and a target of 4760. We will add to these long positions only above 4810.

Happy Trading !!! 

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

Monday 12 December 2011

Nifty - 12 Dec 2011 - Sell on rise to continue

Nifty likely to spike up, but will meet resistance regularly

As discussed on Friday, the Nifty filled the down gaps and traded in the negative for almost the entire trading session. Today, given the global cues, the Nifty is likely to open with a positive gap up, but will most likely meet resistance at higher levels, and will try to test its recent lows.

1) The Elder Ray readings : Bull Power reduced from +102 to -18 Bear Power increased from -26 to -94. This shows that the Bears are now increasing in strength and that the Bulls have lost all their recently accumulated grounds.

2) All the EMAs and the DMAs have now started pointing downwards, indicating resumption of the intermediary down trend.

3) The stochastics, have now moved out of the overbought zone and have started pointing downwards, strengthening the hopes for the bears.



4) In the above chart, the upper Bollinger Band continues to fall steeply, whereas the bottom Bollinger Band is turning flat, and threatening to fall as well. The MACD histogram in in the positive and falling, giving out a sell signal. The ADX has also strengthened its sell signal.

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

a) Around 4925, 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 4820.

b) Around 4845, we will open fresh long positions, with a SL of 4825 and a target of 4890. We will add to these long positions, only above 4960.

Happy Trading !!!
 

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

Nifty - 12 Dec 2011 - Sell on rise to continue

Nifty likely to spike up, but will meet resistance regularly

As discussed on Friday, the Nifty filled the down gaps and traded in the negative for almost the entire trading session. Today, given the global cues, the Nifty is likely to open with a positive gap up, but will most likely meet resistance at higher levels, and will try to test its recent lows.

1) The Elder Ray readings : Bull Power reduced from +102 to -18 Bear Power increased from -26 to -94. This shows that the Bears are now increasing in strength and that the Bulls have lost all their recently accumulated grounds.

2) All the EMAs and the DMAs have now started pointing downwards, indicating resumption of the intermediary down trend.

3) The stochastics, have now moved out of the overbought zone and have started pointing downwards, strengthening the hopes for the bears.



4) In the above chart, the upper Bollinger Band continues to fall steeply, whereas the bottom Bollinger Band is turning flat, and threatening to fall as well. The MACD histogram in in the positive and falling, giving out a sell signal. The ADX has also strengthened its sell signal.

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

a) Around 4925, 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 4820.

b) Around 4845, we will open fresh long positions, with a SL of 4825 and a target of 4890. We will add to these long positions, only above 4960.

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.