The Nifty can be extremely volatile as the current downtrend approaches key supports.
As discussed yesterday, the Big move came in right from the start, and the open and high on the Nifty remained the same throughout the trading session. Today, the Nifty is likely to open flat to negative, but is likely to swing wildly in a big range as the immediate trend is downwards within a upwards medium trend, and the Nifty is tightly squeezed right in the middle.
1) The Elder Ray readings : Bull Power reduces from -17 to -27 Bear Power increases from -34 to -106 indicating that the Bears are in control of the Nifty as of now.
2) The key EMAs on the Nifty are pointing downwards and the Nifty is trading well below its key EMAs. However, the 50 and 100 DMAs are pointing upwards and are stacked up favoring the Bulls.
3) The stochastics are deeply in the oversold zone and suggest very little room for a further fall.
4) In the above chart, the volumes were lesser in yesterday's fall, indicating the lack of participation in the bearish move yesterday. The MACD histogram continues to grow in the negative, indicating a bearish move ahead. The ADX is giving out a fresh sustainable sell signal. And the Parabolic SAR remains bearish.
5) Considering the above, our trading plan for the day is as under.
a) Below 5300, we will open fresh short positions with a SL of 5325 and a target of 5240. We will add to these short positions below 5205.
b) Around 5235, we will open fresh long positions with a SL of 5205 and a target of 5325. We will add to these long positions above 5355.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Big move came in right from the start, and the open and high on the Nifty remained the same throughout the trading session. Today, the Nifty is likely to open flat to negative, but is likely to swing wildly in a big range as the immediate trend is downwards within a upwards medium trend, and the Nifty is tightly squeezed right in the middle.
1) The Elder Ray readings : Bull Power reduces from -17 to -27 Bear Power increases from -34 to -106 indicating that the Bears are in control of the Nifty as of now.
2) The key EMAs on the Nifty are pointing downwards and the Nifty is trading well below its key EMAs. However, the 50 and 100 DMAs are pointing upwards and are stacked up favoring the Bulls.
3) The stochastics are deeply in the oversold zone and suggest very little room for a further fall.
4) In the above chart, the volumes were lesser in yesterday's fall, indicating the lack of participation in the bearish move yesterday. The MACD histogram continues to grow in the negative, indicating a bearish move ahead. The ADX is giving out a fresh sustainable sell signal. And the Parabolic SAR remains bearish.
5) Considering the above, our trading plan for the day is as under.
a) Below 5300, we will open fresh short positions with a SL of 5325 and a target of 5240. We will add to these short positions below 5205.
b) Around 5235, we will open fresh long positions with a SL of 5205 and a target of 5325. We will add to these long positions above 5355.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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