Nifty continues to move down on lack of buying support. 5300 level critical.
As discussed yesterday, "Bulls lose momentum" appeared to be the fact of the day during the entire trading session, as the Nifty opened with a minor gap down (just about 2 points) and then traded in the red for almost the entire session. The Nifty clocked a low of 5313 before closing with a loss of about 15 points. Our plan (a) could not trigger, however it attained its target. Our plan (b) got triggered and we could book a profit of 20 points by end of the trading session.
1) The Elder Ray readings : Bull Power reduces from +45 to +8 Bear Power rises from -7 to -38, indicating that the Bears are gaining momentum now. For today, the Bulls need to take the Nifty above 5365 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA. However, it has closed above its 21EMA and above all its key DMAs. This indicates that all is not lost yet for the Bulls.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downmove may sustain now. The MACD has turned decisively downwards, with the Histogram turning negative. The ADX is also now favoring the Bears, with the Parabolic SAR continuing with its sell signal with a SL of 5446.
5) Considering the above, our trading plan for the day is as under.
a) Around 5360 we will open fresh short positions with a SL of 5375 and a target of 5310. We will add to these short positions only below 5290.
b) Around 5300 we will open fresh long positions with a SL of 5290 and a target of 5340. We will add to these long positions only above 5375.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, "Bulls lose momentum" appeared to be the fact of the day during the entire trading session, as the Nifty opened with a minor gap down (just about 2 points) and then traded in the red for almost the entire session. The Nifty clocked a low of 5313 before closing with a loss of about 15 points. Our plan (a) could not trigger, however it attained its target. Our plan (b) got triggered and we could book a profit of 20 points by end of the trading session.
1) The Elder Ray readings : Bull Power reduces from +45 to +8 Bear Power rises from -7 to -38, indicating that the Bears are gaining momentum now. For today, the Bulls need to take the Nifty above 5365 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5305 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA and 13EMA. However, it has closed above its 21EMA and above all its key DMAs. This indicates that all is not lost yet for the Bulls.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the downmove may sustain now. The MACD has turned decisively downwards, with the Histogram turning negative. The ADX is also now favoring the Bears, with the Parabolic SAR continuing with its sell signal with a SL of 5446.
5) Considering the above, our trading plan for the day is as under.
a) Around 5360 we will open fresh short positions with a SL of 5375 and a target of 5310. We will add to these short positions only below 5290.
b) Around 5300 we will open fresh long positions with a SL of 5290 and a target of 5340. We will add to these long positions only above 5375.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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