After taking support again in the 5200 zone, the Nifty remains range bound.
As discussed yesterday, the Bearish mood on the Nifty continued during the morning trade. The smart recovery in the afternoon got swept away by the Tsunami of bears and the Nifty closed in the red losing 17 points. Today, the Nifty is likely to open flat and swing wildly within its current trading range.
1) The Elder Ray readings : Bull Power rises from -22 to -7 Bear Power also rises from -66 to -80, indicating that there is tussle for power going on and the bears have a slight advantage over the bulls. For today, the Bulls need to cross 5265 to regain their lost territory whereas the Bears need to breach 5185 to maintain their momentum. These two levels could be the range boundaries for today.
2) The Nifty continues to trade below its key EMAs, which are pointing downwards now. It also continues to trade well below its 50 DMA which is at 5335.
3) The stochastics remain in the neutral zone and continue to point downwards.
4) In the above chart, the volumes have slightly increased indicating increase in participation of the traders on the Nifty. The MACD continues in the red and continues to point flat. The ADX is also suggesting lack of any strong trend but is favoring the down move as of now. The Parabolic SAR continues to hold out a buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5270, we will open fresh short positions with a SL of 5300 and a target of 5190. We will add to these short positions below 5160.
b) Around 5180, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions above 5300.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Bearish mood on the Nifty continued during the morning trade. The smart recovery in the afternoon got swept away by the Tsunami of bears and the Nifty closed in the red losing 17 points. Today, the Nifty is likely to open flat and swing wildly within its current trading range.
1) The Elder Ray readings : Bull Power rises from -22 to -7 Bear Power also rises from -66 to -80, indicating that there is tussle for power going on and the bears have a slight advantage over the bulls. For today, the Bulls need to cross 5265 to regain their lost territory whereas the Bears need to breach 5185 to maintain their momentum. These two levels could be the range boundaries for today.
2) The Nifty continues to trade below its key EMAs, which are pointing downwards now. It also continues to trade well below its 50 DMA which is at 5335.
3) The stochastics remain in the neutral zone and continue to point downwards.
4) In the above chart, the volumes have slightly increased indicating increase in participation of the traders on the Nifty. The MACD continues in the red and continues to point flat. The ADX is also suggesting lack of any strong trend but is favoring the down move as of now. The Parabolic SAR continues to hold out a buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5270, we will open fresh short positions with a SL of 5300 and a target of 5190. We will add to these short positions below 5160.
b) Around 5180, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions above 5300.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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