The downtrend may continue for a while, as the Nifty gets bearish mood.
As discussed yesterday, we were sensing undercurrents of a big move, and the direction of that move became clear when the Nifty opened gap down. The late evening effort for recovery, gave us yet another opportunity to go short and book one more round of profit by the end of the session. Today, the Nifty will still be under some selling pressure, but may find good support around 5200 5160.
1) The Elder Ray readings : Bull Power reduces from +47 to +4 Bear Power increases from +13 to -56 indicating that the Bears have now regained all of their lost territory and have gained some momentum also. The Bulls are still safe in their territory, however, their task has become that much more difficult. For today, the Bulls need to cross over 5285 to retain their territory whereas the Bears need to breach 5210 to maintain their momentum.
2) The Nifty is now trading below its key EMAs and below its 50 DMA. However the 200 DMA at 5163 may offer good support, and may stall the downtrend.
3) The stochastics are in the neutral zone and are pointing downwards, indicating that there is some more room for a further fall on the Nifty.
4) In the above chart, the volumes have yet again depleted, indicating lack of interest and lack of sustainability of the current fall. The MACD is still in the negative and is flat, indicating continuation of the current negative trend. The ADX is still suggesting absence of any strong trend but is showing a bias towards a down move. The Parabolic SAR is continuing with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5255, we will open fresh short positions with a SL of 5270 and a target of 5200. We will add to these shorts only below 5160.
b) Around 5190, we will open fresh long positions with a SL of 5170 and a target of 5255. We will add to these long positions only above 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we were sensing undercurrents of a big move, and the direction of that move became clear when the Nifty opened gap down. The late evening effort for recovery, gave us yet another opportunity to go short and book one more round of profit by the end of the session. Today, the Nifty will still be under some selling pressure, but may find good support around 5200 5160.
1) The Elder Ray readings : Bull Power reduces from +47 to +4 Bear Power increases from +13 to -56 indicating that the Bears have now regained all of their lost territory and have gained some momentum also. The Bulls are still safe in their territory, however, their task has become that much more difficult. For today, the Bulls need to cross over 5285 to retain their territory whereas the Bears need to breach 5210 to maintain their momentum.
2) The Nifty is now trading below its key EMAs and below its 50 DMA. However the 200 DMA at 5163 may offer good support, and may stall the downtrend.
3) The stochastics are in the neutral zone and are pointing downwards, indicating that there is some more room for a further fall on the Nifty.
4) In the above chart, the volumes have yet again depleted, indicating lack of interest and lack of sustainability of the current fall. The MACD is still in the negative and is flat, indicating continuation of the current negative trend. The ADX is still suggesting absence of any strong trend but is showing a bias towards a down move. The Parabolic SAR is continuing with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5255, we will open fresh short positions with a SL of 5270 and a target of 5200. We will add to these shorts only below 5160.
b) Around 5190, we will open fresh long positions with a SL of 5170 and a target of 5255. We will add to these long positions only above 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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