After a lackluster end to the last series, the fresh series starts with weak technicals.
Yesterday, we had suggested, it would be a cautious expiry and look at what we got. We got a NR7 day (a day on which the range was the narrowest in the last 7 trading sessions) and also got a Inside Day (a day when neither the previous day's high nor the previous day's low was breached). Such days typically depict high amount of indecision amongst the market participants, and are usually followed by high turbulence days.
1) The Elder Ray readings : Bull Power reduces from -17 to -28 Bear Power also reduces from -92 to -65 indicating that though the Bears have lost some momentum, they are still stronger than the Bulls, who are in the opponent's territory. For today, the Bulls need to overcome 5240 to return to safety, whereas the Bears need to breach 5170 to retain their momentum.
2) The Nifty is trading well below its key EMAs which are pointing downwards and are stacked inversely. The 200 DMA which was flat has started to point downwards, indicating that the medium term trend has shifted towards the bears. 5130 the level where the 100 and 200 DMAs are converging, could be a point to be watched out for.
3) The stochastics are just inside the oversold zone.
4) In the above chart, the volumes have risen in yesterday's fall on the Nifty, indicating strengthening of the down move. The MACD is now well in the negative and is falling down. The ADX is getting stronger and is showing a bias towards a down move. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5215, we will open fresh short positions with a SL of 5245 and a target of 5170. We will add to these short positions only below 5135.
b) Around 5145, we will open fresh long positions with a SL of 5135 and a target of 5190. We will add to these long positions only above 5245.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had suggested, it would be a cautious expiry and look at what we got. We got a NR7 day (a day on which the range was the narrowest in the last 7 trading sessions) and also got a Inside Day (a day when neither the previous day's high nor the previous day's low was breached). Such days typically depict high amount of indecision amongst the market participants, and are usually followed by high turbulence days.
1) The Elder Ray readings : Bull Power reduces from -17 to -28 Bear Power also reduces from -92 to -65 indicating that though the Bears have lost some momentum, they are still stronger than the Bulls, who are in the opponent's territory. For today, the Bulls need to overcome 5240 to return to safety, whereas the Bears need to breach 5170 to retain their momentum.
2) The Nifty is trading well below its key EMAs which are pointing downwards and are stacked inversely. The 200 DMA which was flat has started to point downwards, indicating that the medium term trend has shifted towards the bears. 5130 the level where the 100 and 200 DMAs are converging, could be a point to be watched out for.
3) The stochastics are just inside the oversold zone.
4) In the above chart, the volumes have risen in yesterday's fall on the Nifty, indicating strengthening of the down move. The MACD is now well in the negative and is falling down. The ADX is getting stronger and is showing a bias towards a down move. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5215, we will open fresh short positions with a SL of 5245 and a target of 5170. We will add to these short positions only below 5135.
b) Around 5145, we will open fresh long positions with a SL of 5135 and a target of 5190. We will add to these long positions only above 5245.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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