With the Nifty at the lower end of its current trading range, Bears still rule.
As discussed yesterday, the downtrend on the Nifty continued for a major part of the trading session, with the Nifty ending at 4637, unable to cross the day's high established in the morning trade. Today, the Nifty is likely to open in the flat to positive zone, but again at a bit high selling may emerge.
1) The Elder Ray readings :Bull Power reduces from -24 to -57 Bear Power rises from -105 to -115 indicating that the Bears are still in control, and that any rise should be used for opening short positions on the Nifty.
2) The EMAs and the DMAs are still pointing downwards. The 8EMA and the 13EMA stand at 4678 and 4703 respectively and can be used as pointers for opening short positions.
3) The stochastics are in the neutral zone and are pointing towards a directionless market.
4) In the above chart, the volumes have depleted indicating lack of participation. The MACD is pointing towards a directionless markets, but the ADX is hinting at the downtrend getting stronger.
5) Considering the above, our trading plan for the day is as under
a) Below 4680, we will open fresh short positions with a SL of 4710 and a target of 4605. We will add to these short positions only below 4575.
b) Above 4590, we will open fresh long positions with a SL of 4575 and a target of 4640. We will add to these long positions only above 4715.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the downtrend on the Nifty continued for a major part of the trading session, with the Nifty ending at 4637, unable to cross the day's high established in the morning trade. Today, the Nifty is likely to open in the flat to positive zone, but again at a bit high selling may emerge.
1) The Elder Ray readings :Bull Power reduces from -24 to -57 Bear Power rises from -105 to -115 indicating that the Bears are still in control, and that any rise should be used for opening short positions on the Nifty.
2) The EMAs and the DMAs are still pointing downwards. The 8EMA and the 13EMA stand at 4678 and 4703 respectively and can be used as pointers for opening short positions.
3) The stochastics are in the neutral zone and are pointing towards a directionless market.
4) In the above chart, the volumes have depleted indicating lack of participation. The MACD is pointing towards a directionless markets, but the ADX is hinting at the downtrend getting stronger.
5) Considering the above, our trading plan for the day is as under
a) Below 4680, we will open fresh short positions with a SL of 4710 and a target of 4605. We will add to these short positions only below 4575.
b) Above 4590, we will open fresh long positions with a SL of 4575 and a target of 4640. We will add to these long positions only above 4715.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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