The downtrend can accelerate today, unless the Bulls come into action.
On 26 Feb we said "Selling to continue". On 02 Mar we said "Negative bias to stay". Next on 03 Mar, we said Nifty was searching for direction. Then on 05 Mar we expected a "Big move round the corner". And finally, yesterday we said "Wild swings ahead".
We are grateful that the Nifty did oblige, and we were able to navigate through the turmoil largely successfully, booking profits along the way.
Today, given the global cues, the Nifty is likely to open with a large negative gap down. The overall short term scenario looks largely bearish at present.
1) The Elder Ray readings : Bull Power increases from -27 t +32 Bear Power also increases from -106 to -144 indicating that the Bears are in a greater strength now, and a further downfall on the Nifty cannot be ruled out.
2) The Nifty continues to trade between its key EMAs and its key DMAs. However the EMAs are pointing downwards, indicating a short term downtrend.
3) The stochastics are deeply in the oversold zone, indicating that a bounce back cannot be ruled out at this stage.
4) In the above chart, the volumes have increased during yesterday's wild swinging fall, indicating larger participation in the down move. The MACD is still in the positive and falling, indicating continuation of the downtrend. The ADX is holding onto its sell signal, but is indicating a slowdown in the downward momentum. The Parabolic SAR also continues to give out a sell signal.
5) Considering the above, our trading plan for the day is as under,
a) Below 5200, we will open fresh short positions with a SL of 5230 and a target of 5130. We will add to these short positions below 5110.
b) Around 5120, we will open fresh long positions with a SL of 5110, and a target of 5190. We will add to these long positions above 5240.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
On 26 Feb we said "Selling to continue". On 02 Mar we said "Negative bias to stay". Next on 03 Mar, we said Nifty was searching for direction. Then on 05 Mar we expected a "Big move round the corner". And finally, yesterday we said "Wild swings ahead".
We are grateful that the Nifty did oblige, and we were able to navigate through the turmoil largely successfully, booking profits along the way.
Today, given the global cues, the Nifty is likely to open with a large negative gap down. The overall short term scenario looks largely bearish at present.
1) The Elder Ray readings : Bull Power increases from -27 t +32 Bear Power also increases from -106 to -144 indicating that the Bears are in a greater strength now, and a further downfall on the Nifty cannot be ruled out.
2) The Nifty continues to trade between its key EMAs and its key DMAs. However the EMAs are pointing downwards, indicating a short term downtrend.
3) The stochastics are deeply in the oversold zone, indicating that a bounce back cannot be ruled out at this stage.
4) In the above chart, the volumes have increased during yesterday's wild swinging fall, indicating larger participation in the down move. The MACD is still in the positive and falling, indicating continuation of the downtrend. The ADX is holding onto its sell signal, but is indicating a slowdown in the downward momentum. The Parabolic SAR also continues to give out a sell signal.
5) Considering the above, our trading plan for the day is as under,
a) Below 5200, we will open fresh short positions with a SL of 5230 and a target of 5130. We will add to these short positions below 5110.
b) Around 5120, we will open fresh long positions with a SL of 5110, and a target of 5190. We will add to these long positions above 5240.
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.