As the current series expires, the Nifty is poised to make a big move. Direction awaited.
As discussed yesterday, the whipsaw emerged, but was kind of slow ginding, and did not have the fullest range. Today, given the global cues, the Nifty is likely to have a subdued opening. However, the key supports are nearing and weakening, which can lead the markets to either a breakout or a breakdown. It will be prudent for us to wait for the outcome rather than jumping the gun.
1) The Elder Ray readings : Bull Power reduces from -13 to -40 Bear Power increases from -106 to -107, indicating that during the entire grinding session yesterday, the Bears have been able to maintain their momentum, while the Bulls have lost some more ground. As for today, the Bears need to breach 5150 to maintain their strength, whereas the Bulls need to cross 5260 to recover entirely.
2) The Nifty is trading below all its key EMAs and has now given 3 consecutive closes below its 50 DMA, strengthening the case for a bearish breakdown. However, the key supports down below are its 200 DMA at 5151 and 100 DMA at 5072.
3) The stochastics are in the oversold zone, and are pointing deep downwards, again strengthening the case for a bearish breakdown.
4) In the above chart, the volumes have depleted, which indicates that the bears may have exhausted, making a case for a Bullish breakout. The MACD has come into the negative after a gap of almost 3 months, indicating that a bearish breakdown may be possible from hereon. The ADX is giving the most important signal, that a fresh move is developing. A baby is being born. Whether the baby is a bull or a bear, the ADX is silent on that. The Parabolic SAR continues to hold on to its Sell Signal. Overall, it is anybody's market today. The next big move is coming up. The chances of a bearish breakdown are slightly more than that of a bullish breakout, but it will be prudent to wait for our turn, rather than rushing into it.
5) Considering the above, our trading plan for the day is as under.
a) Around 5215, we will open fresh short positions with a SL of 5235 and a target of 5175. We will add to these short positions below 5145.
b) Around 5175, we will open fresh long positions with a SL of 5150 and a target of 5210. We will add to these long positions only above 5240.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the whipsaw emerged, but was kind of slow ginding, and did not have the fullest range. Today, given the global cues, the Nifty is likely to have a subdued opening. However, the key supports are nearing and weakening, which can lead the markets to either a breakout or a breakdown. It will be prudent for us to wait for the outcome rather than jumping the gun.
1) The Elder Ray readings : Bull Power reduces from -13 to -40 Bear Power increases from -106 to -107, indicating that during the entire grinding session yesterday, the Bears have been able to maintain their momentum, while the Bulls have lost some more ground. As for today, the Bears need to breach 5150 to maintain their strength, whereas the Bulls need to cross 5260 to recover entirely.
2) The Nifty is trading below all its key EMAs and has now given 3 consecutive closes below its 50 DMA, strengthening the case for a bearish breakdown. However, the key supports down below are its 200 DMA at 5151 and 100 DMA at 5072.
3) The stochastics are in the oversold zone, and are pointing deep downwards, again strengthening the case for a bearish breakdown.
4) In the above chart, the volumes have depleted, which indicates that the bears may have exhausted, making a case for a Bullish breakout. The MACD has come into the negative after a gap of almost 3 months, indicating that a bearish breakdown may be possible from hereon. The ADX is giving the most important signal, that a fresh move is developing. A baby is being born. Whether the baby is a bull or a bear, the ADX is silent on that. The Parabolic SAR continues to hold on to its Sell Signal. Overall, it is anybody's market today. The next big move is coming up. The chances of a bearish breakdown are slightly more than that of a bullish breakout, but it will be prudent to wait for our turn, rather than rushing into it.
5) Considering the above, our trading plan for the day is as under.
a) Around 5215, we will open fresh short positions with a SL of 5235 and a target of 5175. We will add to these short positions below 5145.
b) Around 5175, we will open fresh long positions with a SL of 5150 and a target of 5210. We will add to these long positions only above 5240.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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