The Nifty is still in the consolidating phase.
As discussed yesterday, the Nifty remained directionless, and closed with a modest loss of 4 points. This trend-less gyration on the Nifty may continue for a while before either a breakout or a break down occurs. It is still better to wait for the markets to take a turn, and still better not to hazard a prediction.
1) The Elder Ray readings : Bull Power reduces from +30 to +27 Bear Power increases from +13 to -36 indicating that the Bears are regaining their lost grounds. Also is clear that with both the Bulls and the Bears being equidistant from each other and safe in their own territories, it will be dangerous to predict a winner of the next round at this stage.
2) The key EMAs are pointing upwards whereas the DMAs are pointing downwards. Here again a signal for directionless markets.
3) The stochastics are just leaving the overbought zone and are pointing downwards, indicating a downtrend may occur from hereon.
4) In the above chart, the Bollinger Bands have flattened out, indicating a consolidating market. The volumes are depleting, confirming this consolidation. The MACD is suggesting strength to the up-move, whereas the ADX is suggesting strength to the down-move.
5) Considering the above, we will yet again refrain from trading the Nifty for yet another day today. It is better to be safe than sorry.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty remained directionless, and closed with a modest loss of 4 points. This trend-less gyration on the Nifty may continue for a while before either a breakout or a break down occurs. It is still better to wait for the markets to take a turn, and still better not to hazard a prediction.
1) The Elder Ray readings : Bull Power reduces from +30 to +27 Bear Power increases from +13 to -36 indicating that the Bears are regaining their lost grounds. Also is clear that with both the Bulls and the Bears being equidistant from each other and safe in their own territories, it will be dangerous to predict a winner of the next round at this stage.
2) The key EMAs are pointing upwards whereas the DMAs are pointing downwards. Here again a signal for directionless markets.
3) The stochastics are just leaving the overbought zone and are pointing downwards, indicating a downtrend may occur from hereon.
4) In the above chart, the Bollinger Bands have flattened out, indicating a consolidating market. The volumes are depleting, confirming this consolidation. The MACD is suggesting strength to the up-move, whereas the ADX is suggesting strength to the down-move.
5) Considering the above, we will yet again refrain from trading the Nifty for yet another day today. It is better to be safe than sorry.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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