As the volumes and the trading range broadens, expect volatility to rise now.
As discussed yesterday, the Bullish undertone, prevailed only for a few hours in the morning. However, when the Bulls were not able to breach 5390 and maintain their winning streak, the Bears took over and when 5335 got broken, the Bears swiftly took out 5245 and closed below 5230. Today, the Nifty is likely to open flattish, and then a bout of volatility could unleash, as both the Bulls and the Bears fight it out to gain control.
1) The Elder Ray readings : Bull Power increases from +32 to +62 Bear Power also increases from -84 to -118, indicating that the Bulls are still very much in the picture and cannot be counted out as yet, however the Bears are getting a bit stronger. For today, the Bears need to breach 5190 to maintain their momentum and the Bulls have a target of 5375. This wide ranged targets make us believe, that the volatility could be huge.
2) The Nifty is trading right between its key EMAs and its key DMAs making it vulnerable to get stretched in any direction. However, yesterday it has closed below its 50DMA after about 2 months, making it susceptible to continue downwards.
3) The stochastics are still in the neutral zone with the fast stochastics pointing downwards whereas the slow stochastics is lying flat.
4) In the above chart, the volumes have just slightly increased in yesterday's fall. The MACD continues to fall, but is still in the positive. The ADX is suggesting that a new trend could emerge soon. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5195, we will open fresh long positions with a SL of 5165 and a target of 5275. We will add to these long positions above 5290.
b) Around 5275, we will open fresh short positions with a SL of 5290 and a target of 5200. We will add to these short positions below 5160.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Bullish undertone, prevailed only for a few hours in the morning. However, when the Bulls were not able to breach 5390 and maintain their winning streak, the Bears took over and when 5335 got broken, the Bears swiftly took out 5245 and closed below 5230. Today, the Nifty is likely to open flattish, and then a bout of volatility could unleash, as both the Bulls and the Bears fight it out to gain control.
1) The Elder Ray readings : Bull Power increases from +32 to +62 Bear Power also increases from -84 to -118, indicating that the Bulls are still very much in the picture and cannot be counted out as yet, however the Bears are getting a bit stronger. For today, the Bears need to breach 5190 to maintain their momentum and the Bulls have a target of 5375. This wide ranged targets make us believe, that the volatility could be huge.
2) The Nifty is trading right between its key EMAs and its key DMAs making it vulnerable to get stretched in any direction. However, yesterday it has closed below its 50DMA after about 2 months, making it susceptible to continue downwards.
3) The stochastics are still in the neutral zone with the fast stochastics pointing downwards whereas the slow stochastics is lying flat.
4) In the above chart, the volumes have just slightly increased in yesterday's fall. The MACD continues to fall, but is still in the positive. The ADX is suggesting that a new trend could emerge soon. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5195, we will open fresh long positions with a SL of 5165 and a target of 5275. We will add to these long positions above 5290.
b) Around 5275, we will open fresh short positions with a SL of 5290 and a target of 5200. We will add to these short positions below 5160.
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.