After 5 days of consolidation, a big move expected any time now.
As discussed on Saturday, the Nifty kept on searching for direction, and moved in a narrow range of about 10 points. Today, given the global cues, the Nifty is likely to open flat with a slightly negative bias. It will be interesting to see which way the tide turns today.
1) The Elder Ray readings : Bull Power is at -17 and Bear Power is at -34 indicating that the Bears have a slight advantage over the next move.
2) The Nifty is trading below its key EMAs but is above its key DMAs, indicating a short term downtrend within a larger uptrend.
3) The stochastics are hovering just above the oversold zone, indicating that there is small room for a downfall.
4) In the above chart, the MACD is in the positive and is falling, indicating a short term downtrend ahead. The ADX is also indicating that a big sustainable move is round the corner, but is mute on the direction. The Parabolic SAR is also indicating a downward movement for the Nifty.
5) Considering the above, our trading plan for the day is as under
a) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5310. We will add to these short positions below 5290.
b) Around 5300, we will open fresh long positions with a SL of 5290 and a target of 5355. We will add to these long positions only above 5425.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed on Saturday, the Nifty kept on searching for direction, and moved in a narrow range of about 10 points. Today, given the global cues, the Nifty is likely to open flat with a slightly negative bias. It will be interesting to see which way the tide turns today.
1) The Elder Ray readings : Bull Power is at -17 and Bear Power is at -34 indicating that the Bears have a slight advantage over the next move.
2) The Nifty is trading below its key EMAs but is above its key DMAs, indicating a short term downtrend within a larger uptrend.
3) The stochastics are hovering just above the oversold zone, indicating that there is small room for a downfall.
4) In the above chart, the MACD is in the positive and is falling, indicating a short term downtrend ahead. The ADX is also indicating that a big sustainable move is round the corner, but is mute on the direction. The Parabolic SAR is also indicating a downward movement for the Nifty.
5) Considering the above, our trading plan for the day is as under
a) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5310. We will add to these short positions below 5290.
b) Around 5300, we will open fresh long positions with a SL of 5290 and a target of 5355. We will add to these long positions only above 5425.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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