Although the Nifty closed well above its lows yesterday, the trend is still down.
As discussed yesterday, the Nosedive on the Nifty started, almost at the open, with the Nifty opening with a huge gap down, and then recovering in the later half, just to close the gap. Our plan b said "Around 4970, we will open fresh long positions with a SL of 4960, and a target of 5100", and the market obliged. The technicals are still pointing towards a down move gathering momentum.
1) The Elder Ray readings : Bull Power reduces from -33 to -72 Bear Power increases from -140 to -209, indicating that the Bears are still in the drivers seat, and a down move is more likely. For today, the Bulls need to overcome 5185 to get into their safe zone, where as the Bears need to breach 4990 again to retain their downwards momentum.
2) The Nifty is trading well below its key EMAs and its key DMAs, yesterday's pullback got arrested at 5125 which is the 200 DMA at present. Resistances to any up move lie at 5145 and 5173.
3) The stochastics are in the neutral zone, and are very near to the oversold zone.
4) In the above chart, the volumes have remained stagnant. The MACD is falling away. The ADX is now indicating gathering of momentum to the trend and the direction of the trend being downwards. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5145, we will open fresh short positions with a SL of 5175 and a target of 5040. We will add to these short positions only below 5010.
b) Above 5075, we will open fresh long positions with a SL of 5045, and a target of 5125. We will add to these long positions only above 5175.
c) Below 5075, the trend is downwards. We will look out for opportunities to go long only above 5075.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, the Nosedive on the Nifty started, almost at the open, with the Nifty opening with a huge gap down, and then recovering in the later half, just to close the gap. Our plan b said "Around 4970, we will open fresh long positions with a SL of 4960, and a target of 5100", and the market obliged. The technicals are still pointing towards a down move gathering momentum.
1) The Elder Ray readings : Bull Power reduces from -33 to -72 Bear Power increases from -140 to -209, indicating that the Bears are still in the drivers seat, and a down move is more likely. For today, the Bulls need to overcome 5185 to get into their safe zone, where as the Bears need to breach 4990 again to retain their downwards momentum.
2) The Nifty is trading well below its key EMAs and its key DMAs, yesterday's pullback got arrested at 5125 which is the 200 DMA at present. Resistances to any up move lie at 5145 and 5173.
3) The stochastics are in the neutral zone, and are very near to the oversold zone.
4) In the above chart, the volumes have remained stagnant. The MACD is falling away. The ADX is now indicating gathering of momentum to the trend and the direction of the trend being downwards. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5145, we will open fresh short positions with a SL of 5175 and a target of 5040. We will add to these short positions only below 5010.
b) Above 5075, we will open fresh long positions with a SL of 5045, and a target of 5125. We will add to these long positions only above 5175.
c) Below 5075, the trend is downwards. We will look out for opportunities to go long only above 5075.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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