As Bears try to wrest control of the Nifty, volatility may be unleashed.
In our yesterday's post, "Bulls still in control", we had suggested that 5285 would be a good support and that the Bears needed to crack 5260 to regain their lost grounds. As it turned out, the Bears opened the Nifty near their primary target and swiftly achieved it. Part b of our trading plan B got triggered and fetched us a neat profit of 40 points. For today, given the global cues, the Nifty is likely to open flat to negative, and we would be keenly watching how it behaves in the 5180 5200 zone.
1) The Elder Ray readings : Bull Power reduces from +80 to +8 Bear Power rises from +43 to -36, indicating that Bears have now regained their territory after 25 trading sessions, and now need to follow up to retain that. For today, the Bulls need to overcome 5275 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5210 to maintain their downwards momentum.
2) The Nifty has now closed below its 8 and 13 EMAs, however, it has closed above its 21EMA and all its key DMAs.
3) The stochastics are now out of the overbought zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downturn may sustain. The MACD has also given a signal of reversal towards a down move. The ADX is suggesting a equal momentum for both the Bulls and the Bears. The Parabolic SAR has again turned into a Sell Signal with a SL at 5350.
5) Considering the above, our trading plan for the day is as under.
a) Around 5200, we will open fresh long positions with a SL of 5185 and a target of 5270. We will add to these long positions only above 5295.
b) Around 5280, we will open fresh short positions with a SL of 5295 and a target of 5210. We will add to these short positions only below 5185.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
In our yesterday's post, "Bulls still in control", we had suggested that 5285 would be a good support and that the Bears needed to crack 5260 to regain their lost grounds. As it turned out, the Bears opened the Nifty near their primary target and swiftly achieved it. Part b of our trading plan B got triggered and fetched us a neat profit of 40 points. For today, given the global cues, the Nifty is likely to open flat to negative, and we would be keenly watching how it behaves in the 5180 5200 zone.
1) The Elder Ray readings : Bull Power reduces from +80 to +8 Bear Power rises from +43 to -36, indicating that Bears have now regained their territory after 25 trading sessions, and now need to follow up to retain that. For today, the Bulls need to overcome 5275 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5210 to maintain their downwards momentum.
2) The Nifty has now closed below its 8 and 13 EMAs, however, it has closed above its 21EMA and all its key DMAs.
3) The stochastics are now out of the overbought zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downturn may sustain. The MACD has also given a signal of reversal towards a down move. The ADX is suggesting a equal momentum for both the Bulls and the Bears. The Parabolic SAR has again turned into a Sell Signal with a SL at 5350.
5) Considering the above, our trading plan for the day is as under.
a) Around 5200, we will open fresh long positions with a SL of 5185 and a target of 5270. We will add to these long positions only above 5295.
b) Around 5280, we will open fresh short positions with a SL of 5295 and a target of 5210. We will add to these short positions only below 5185.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Dear Sir,
ReplyDeleteIt is nice see the clear analysis nicely presented for us to understand easily.All levels are of Spot levels i presume.