With lackluster participation, the downtrend on the nifty might continue today.
As discussed on Friday, the bearishness on the Nifty set in, and the Nifty closed at 4624 after showing a high of 4690 during the trading session. Today, given the global cues, the Nifty is likely to open with a negative bias, and may test the near supports o 4560.
1) The Elder Ray readings : Bull Power increases from -28 to -24 Bear Power also increases from -90 to -105, indicating that the Bears are still in control, and may pull down the market aggressively today.
2) The EMAs and the DMAs continue to point downwards, showing no respite to the Nifty.
3) The stochastics are in the neutral zone and are pointing downwards, indicating continued downtrend.
4) In the above chart, the volumes are depleting indicating lack of participation in the markets. the MACD is in the positive but is declining, the ADX is also indicating strengthening of the downtrend.
5) Considering the above, our trading plan for the day is as under,
a) Below 4670, we will open fresh short positions with a SL of 4700 and a target of 4580. We will add to these short positions only below 4565.
b) Above 4575, we will open fresh long positions with a SL of 4565 and a target of 4635. We will add to these long positions only above 4705.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Friday, the bearishness on the Nifty set in, and the Nifty closed at 4624 after showing a high of 4690 during the trading session. Today, given the global cues, the Nifty is likely to open with a negative bias, and may test the near supports o 4560.
1) The Elder Ray readings : Bull Power increases from -28 to -24 Bear Power also increases from -90 to -105, indicating that the Bears are still in control, and may pull down the market aggressively today.
2) The EMAs and the DMAs continue to point downwards, showing no respite to the Nifty.
3) The stochastics are in the neutral zone and are pointing downwards, indicating continued downtrend.
4) In the above chart, the volumes are depleting indicating lack of participation in the markets. the MACD is in the positive but is declining, the ADX is also indicating strengthening of the downtrend.
5) Considering the above, our trading plan for the day is as under,
a) Below 4670, we will open fresh short positions with a SL of 4700 and a target of 4580. We will add to these short positions only below 4565.
b) Above 4575, we will open fresh long positions with a SL of 4565 and a target of 4635. We will add to these long positions only above 4705.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Happy new year to all may this year brings lots of happiness to you and your family.God Bless you have a great year ahead.
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