As the Nifty gives up all the gains in one day, the Bears have stamped their authority.
Yesterday, we had suggested that the trend was still downwards, and the Nifty after opening flat, got resisted at the 200 DMA and gave up all the gains made on the previous day, to close at 5000. Today, given the global cues, the Nifty may open with a small gap down, but may grind within a 100 point range below 5035.
1) The Elder Ray readings : Bull Power increases from -72 to -49 Bear Power reduces from -209 to -186 indicating that though the Bears won the last round, they have actually lost momentum. However the Bulls have no momentum going their way at all. This gives credence to the theory that the Nifty may grind for a while. For today, the Bulls need to overcome 5170 to regain their lost grounds, whereas the Bears need to breach 4970 to maintain their momentum.
2) The Nifty is trading well below its key EMAs and key DMAs.
3) The stochastics are well in the oversold zone now.
4) In the above chart, the volumes have decreased in yesterday's fall, indicating that a small bounce back cannot be ruled out. The MACD has fallen away as feared yesterday. The ADX is now signalling a gain in the trend momentum that is favoring the Bears. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5035, we will open fresh short positions with a SL of 5055 and a target of 4935. We will add to these short positions only below 4915.
b) Above 4940, we will open fresh long positions with a SL of 4915 and a target of 5000. We will add to these long positions only above 5055.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Yesterday, we had suggested that the trend was still downwards, and the Nifty after opening flat, got resisted at the 200 DMA and gave up all the gains made on the previous day, to close at 5000. Today, given the global cues, the Nifty may open with a small gap down, but may grind within a 100 point range below 5035.
1) The Elder Ray readings : Bull Power increases from -72 to -49 Bear Power reduces from -209 to -186 indicating that though the Bears won the last round, they have actually lost momentum. However the Bulls have no momentum going their way at all. This gives credence to the theory that the Nifty may grind for a while. For today, the Bulls need to overcome 5170 to regain their lost grounds, whereas the Bears need to breach 4970 to maintain their momentum.
2) The Nifty is trading well below its key EMAs and key DMAs.
3) The stochastics are well in the oversold zone now.
4) In the above chart, the volumes have decreased in yesterday's fall, indicating that a small bounce back cannot be ruled out. The MACD has fallen away as feared yesterday. The ADX is now signalling a gain in the trend momentum that is favoring the Bears. The Parabolic SAR is continuing with its sell signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5035, we will open fresh short positions with a SL of 5055 and a target of 4935. We will add to these short positions only below 4915.
b) Above 4940, we will open fresh long positions with a SL of 4915 and a target of 5000. We will add to these long positions only above 5055.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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