It will be prudent to wait for a fresh signal, on the day of expiry.
As discussed yesterday, the Nifty was being held high by the Bulls for the first half of the trading session. However, towards the end, selling emerged and got stronger, closing the Nifty with a loss of 102 points. Is this the end of the up-move? Will the selling continue? These are questions that will be answered by end of the day today. It is better to wait for that signal, instead of anticipating.
1) The Elder Ray readings : Bull Power reduces from +201 to +197 Bear Power increases from +141 to +59 indicating that although the Bears have increased their power, follow up selling is required to take them into their safety zone. Bulls on the other hand have not lost much.
2) The Nifty has taken support yesterday at 5493 which is the 8EMA. The 200 DMA has also flattened out, indicating "wait for signal"
3) The stochastics have just moved out of the overbought zone and are now pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall, indicating the first signals of a downtrend emerging. The MACD is not yet giving any negative divergence, and the ADX is signalling loss of positive momentum and gain in negative momentum. However a fresh sell signal has not yet emerged on the ADX.
5) Considering the above, our trading plan for the day is as under
a) Below 5540, we will open fresh short positions with a SL of 5570 and a target of 5470. We will add to these short positions below 5440.
b) Above 5480, we will open fresh long positions with a SL of 5465 and a target of 5535. We will add to these long positions above 5575.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nifty was being held high by the Bulls for the first half of the trading session. However, towards the end, selling emerged and got stronger, closing the Nifty with a loss of 102 points. Is this the end of the up-move? Will the selling continue? These are questions that will be answered by end of the day today. It is better to wait for that signal, instead of anticipating.
1) The Elder Ray readings : Bull Power reduces from +201 to +197 Bear Power increases from +141 to +59 indicating that although the Bears have increased their power, follow up selling is required to take them into their safety zone. Bulls on the other hand have not lost much.
2) The Nifty has taken support yesterday at 5493 which is the 8EMA. The 200 DMA has also flattened out, indicating "wait for signal"
3) The stochastics have just moved out of the overbought zone and are now pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall, indicating the first signals of a downtrend emerging. The MACD is not yet giving any negative divergence, and the ADX is signalling loss of positive momentum and gain in negative momentum. However a fresh sell signal has not yet emerged on the ADX.
5) Considering the above, our trading plan for the day is as under
a) Below 5540, we will open fresh short positions with a SL of 5570 and a target of 5470. We will add to these short positions below 5440.
b) Above 5480, we will open fresh long positions with a SL of 5465 and a target of 5535. We will add to these long positions above 5575.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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