Even after a 150 point fall yesterday, the Bulls have not lost it all. Today's close critical.
As discussed yesterday, there were "Resistance Bands Ahead" in the path of the Nifty, and it played out quite that way on the bourses, with the Nifty opening with a 35 point gap up and hitting the resistance zone in the morning session, only to sell off by the noon. Our plan (b) succeeded with great accuracy, and there was no chance of executing plan (a) with the Nifty swiftly falling through the entry and SL points. Today, is a critical day, and the follow up action either by the Bulls or the Bears, would determine the short term trend for days ahead.
1) The Elder Ray readings : Bull Power rises from +111 to +151 Bear Power also rises from +34 to +2, indicating that the Bulls are still in the command, but the Bears are very close to their safe zone. For today, the Bulls need to overcome 5195 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5045 to return to safe zone.
2) The Nifty is now trading at its 8EMA and above its 13EMA and 21EMA. However, it is still below all its key DMAs. The "death cross" of the 50DMA and the 200DMA occurred yesterday, which is a bearish sign for the future.
3) The stochastics are hovering on the edge of the overbought zone, and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall, indicating sustainability to lower prices. The MACD is in the positive and has started falling, indicating a bearish phase ahead on the Nifty. The ADX, however, is suggesting a loss of momentum to the trend and is favoring the Bulls. The Parabolic SAR still holds on to its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5000, we will open fresh long positions with a SL of 4985 and a target of 5100. We will add to these long positions only above 5135.
b) Around 5110, we will open fresh short positions with a SL of 5130 and a target of 5000. We will add to these short positions only below 4985.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, there were "Resistance Bands Ahead" in the path of the Nifty, and it played out quite that way on the bourses, with the Nifty opening with a 35 point gap up and hitting the resistance zone in the morning session, only to sell off by the noon. Our plan (b) succeeded with great accuracy, and there was no chance of executing plan (a) with the Nifty swiftly falling through the entry and SL points. Today, is a critical day, and the follow up action either by the Bulls or the Bears, would determine the short term trend for days ahead.
1) The Elder Ray readings : Bull Power rises from +111 to +151 Bear Power also rises from +34 to +2, indicating that the Bulls are still in the command, but the Bears are very close to their safe zone. For today, the Bulls need to overcome 5195 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5045 to return to safe zone.
2) The Nifty is now trading at its 8EMA and above its 13EMA and 21EMA. However, it is still below all its key DMAs. The "death cross" of the 50DMA and the 200DMA occurred yesterday, which is a bearish sign for the future.
3) The stochastics are hovering on the edge of the overbought zone, and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall, indicating sustainability to lower prices. The MACD is in the positive and has started falling, indicating a bearish phase ahead on the Nifty. The ADX, however, is suggesting a loss of momentum to the trend and is favoring the Bulls. The Parabolic SAR still holds on to its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5000, we will open fresh long positions with a SL of 4985 and a target of 5100. We will add to these long positions only above 5135.
b) Around 5110, we will open fresh short positions with a SL of 5130 and a target of 5000. We will add to these short positions only below 4985.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
I have been following your blog after your comments in JN a few days ago. I am grateful for your levels, great..! Thank you!!
ReplyDeleteNice to see your valuable insight
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