The Nifty is likely to trade with a negative bias now.
As discussed yesterday, it turned out to be a volatile day, with the Nifty recovering almost 50 points within the last hour of trade. Today, the Nifty is likely to open with a positive gap up, but will face selling at higher levels, it seems.
1) The Elder Ray readings : Bull Power reduces from +52 to -25 Bear Power increases from -54 to -100. This indicates that the Bears have now gained enough control to drive the Nifty lower and any rise should be used for selling.
2) The Nifty is trading below all its key EMAs now, and all the EMAs are pointing downwards.
3) The stochastics are now pointing downwards and are just above the oversold zone, indicating that the downfall has some room available.
4) In the above chart, the volumes have been decreasing in yesterday's volatile market. The MACD is in the positive but is falling, indicating downward movement on the Nifty. The ADX is signalling a fresh sell call and the Parabolic SAR is confirming that the downward trend is gaining momentum.
5) Considering the above, our trading plan for the day is as under.
a) Around 5360, we will open fresh short positions with a SL of 5385 and a target of 5310. We will add to these short positions below 5295.
b) Around 5305, we will open fresh long positions with a SL of 5295 and a target of 5350. We will add to these long positions only above 5400.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, it turned out to be a volatile day, with the Nifty recovering almost 50 points within the last hour of trade. Today, the Nifty is likely to open with a positive gap up, but will face selling at higher levels, it seems.
1) The Elder Ray readings : Bull Power reduces from +52 to -25 Bear Power increases from -54 to -100. This indicates that the Bears have now gained enough control to drive the Nifty lower and any rise should be used for selling.
2) The Nifty is trading below all its key EMAs now, and all the EMAs are pointing downwards.
3) The stochastics are now pointing downwards and are just above the oversold zone, indicating that the downfall has some room available.
4) In the above chart, the volumes have been decreasing in yesterday's volatile market. The MACD is in the positive but is falling, indicating downward movement on the Nifty. The ADX is signalling a fresh sell call and the Parabolic SAR is confirming that the downward trend is gaining momentum.
5) Considering the above, our trading plan for the day is as under.
a) Around 5360, we will open fresh short positions with a SL of 5385 and a target of 5310. We will add to these short positions below 5295.
b) Around 5305, we will open fresh long positions with a SL of 5295 and a target of 5350. We will add to these long positions only above 5400.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
No comments:
Post a Comment
Please add your comments here. Comments will be moderated.