As the much tested lows got broken, the Nifty is about to nosedive from now on.
In our last post, we had suggested that the Nifty was about to test the range lows, and those tests failed almost readily and immediately, and the Nifty then traded much below those 5130 levels and closed with a huge loss at 5088. Today, given the global cues, the Nifty is likely to open gap down and stay down for most of the trading session.
1) The Elder Ray readings : Bull Power reduces from -14 to -33 Bear Power rises from -50 to -140, indicating that the Bears are in full control of the Nifty now, and that the Bulls will have a tough time ahead. For today, the Bulls need to overcome 5200 to regain their lost territory, whereas the Bears need to breach 5060 to maintain their downwards momentum.
2) The Nifty is now trading well below all its key EMAs and all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in last session's fall on the Nifty, indicating sustenance of the downward momentum. The MACD has started to fall now, and the ADX is also suggesting rising momentum for the downward move. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5080, we will open fresh short positions with a SL of 5095 and a target of 4980. We will add to these short positions only below 4955.
b) Around 4970, we will open fresh long positions with a SL of 4960, and a target of 5100. We will add to these long positions only above 5120.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
In our last post, we had suggested that the Nifty was about to test the range lows, and those tests failed almost readily and immediately, and the Nifty then traded much below those 5130 levels and closed with a huge loss at 5088. Today, given the global cues, the Nifty is likely to open gap down and stay down for most of the trading session.
1) The Elder Ray readings : Bull Power reduces from -14 to -33 Bear Power rises from -50 to -140, indicating that the Bears are in full control of the Nifty now, and that the Bulls will have a tough time ahead. For today, the Bulls need to overcome 5200 to regain their lost territory, whereas the Bears need to breach 5060 to maintain their downwards momentum.
2) The Nifty is now trading well below all its key EMAs and all its key DMAs.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in last session's fall on the Nifty, indicating sustenance of the downward momentum. The MACD has started to fall now, and the ADX is also suggesting rising momentum for the downward move. The Parabolic SAR continues with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5080, we will open fresh short positions with a SL of 5095 and a target of 4980. We will add to these short positions only below 4955.
b) Around 4970, we will open fresh long positions with a SL of 4960, and a target of 5100. We will add to these long positions only above 5120.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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