Nifty enters a trading mode at the start of the Sept. series. Sell on rise. Buy on dips.
As discussed yesterday, we saw expiry jitters on the Nifty, with the roll over pressure taking the Nifty up to 5340 in the last 40 minutes of trade, before settling at 5315. Earlier the Nifty was subdued throughout the trading session and touched a low of 5255, which could become a major support for days to come.
1) The Elder Ray readings : Bull Power rises from +3 to +5 Bear Power also rises from -59 to -83, confirming that the Nifty has entered a trading mode. For today, the Bulls need to surpass 5345 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5250 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and all its key DMAs.
3) The stochastics are in the oversold zone and are looking to rise.
4) In the above chart, the volumes have increased exceptionally with the rise in the Nifty, indicating that Nifty is at strong supports. However, the MACD is pointing downwards, with the Histogram getting more negative. The ADX is also favoring the Bears, and the Parabolic SAR continues its sell signal with a SL of 5428.
5) Considering the above, our trading plan for the day is as under
a) Around 5290, we will open fresh long positions with a SL of 5265 and a target of 5340. We will add to these long positions only above 5375,
b) Around 5355, we will open fresh short positions with a SL of 5370 and a target of 5300. We will add to these short positions only below 5260.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw expiry jitters on the Nifty, with the roll over pressure taking the Nifty up to 5340 in the last 40 minutes of trade, before settling at 5315. Earlier the Nifty was subdued throughout the trading session and touched a low of 5255, which could become a major support for days to come.
1) The Elder Ray readings : Bull Power rises from +3 to +5 Bear Power also rises from -59 to -83, confirming that the Nifty has entered a trading mode. For today, the Bulls need to surpass 5345 to maintain their upwards momentum, whereas the Bears need to breach the Nifty below 5250 to maintain their downwards momentum.
2) The Nifty has closed below all its key EMAs and all its key DMAs.
3) The stochastics are in the oversold zone and are looking to rise.
4) In the above chart, the volumes have increased exceptionally with the rise in the Nifty, indicating that Nifty is at strong supports. However, the MACD is pointing downwards, with the Histogram getting more negative. The ADX is also favoring the Bears, and the Parabolic SAR continues its sell signal with a SL of 5428.
5) Considering the above, our trading plan for the day is as under
a) Around 5290, we will open fresh long positions with a SL of 5265 and a target of 5340. We will add to these long positions only above 5375,
b) Around 5355, we will open fresh short positions with a SL of 5370 and a target of 5300. We will add to these short positions only below 5260.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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