Today's trade depends on whether the Bulls maintain the Nifty above 5285.
As discussed yesterday, we saw the Bearish grip tighten on the Nifty, with the Nifty opening with a minor gap down and trade in a pretty narrow range for most of the day. In the later part, we also saw the Nifty rise, only to give up almost all gains within a span of 10 minutes. Today, given the global cues, the Nifty is ready to open with a smart gap up. However, the further movement depends heavily on whether the Bulls are able to maintain it over 5285.
1) The Elder Ray readings : Bull Power rises from -39 to -29 Bear Power reduces from -83 to -72 indicating that the Nifty is still under the spell of the Bears. For today, the Bulls need to overcome the levels of 5285 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5205 on the Nifty to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs and below its 50DMA.
3) The stochastics are still in the oversold zone.
4) In the above chart, the volumes have decreased with the small rise in the Nifty, indicating that the downtrend has paused. The MACD continues to fall, with the Histogram suggesting a pause. The ADX is suggesting a rise in the momentum, with a bearish bias. The Parabolic SAR continues with its sell signal with a SL of 5340.
5) Considering the above, our trading plan for the day is as under.
a) Above 5285, we will open fresh long positions with a SL of 5275 and a target of 5325.
b) Below 5275, we will open fresh short positions with a SL of 5285 and a target of 5230.
c) We will wait patiently for these levels to arrive. If not, we would enjoy watching the markets from the sidelines.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw the Bearish grip tighten on the Nifty, with the Nifty opening with a minor gap down and trade in a pretty narrow range for most of the day. In the later part, we also saw the Nifty rise, only to give up almost all gains within a span of 10 minutes. Today, given the global cues, the Nifty is ready to open with a smart gap up. However, the further movement depends heavily on whether the Bulls are able to maintain it over 5285.
1) The Elder Ray readings : Bull Power rises from -39 to -29 Bear Power reduces from -83 to -72 indicating that the Nifty is still under the spell of the Bears. For today, the Bulls need to overcome the levels of 5285 on the Nifty to regain their lost grounds, whereas the Bears need to breach the levels of 5205 on the Nifty to maintain their downwards momentum.
2) The Nifty has yet again closed below all its key EMAs and below its 50DMA.
3) The stochastics are still in the oversold zone.
4) In the above chart, the volumes have decreased with the small rise in the Nifty, indicating that the downtrend has paused. The MACD continues to fall, with the Histogram suggesting a pause. The ADX is suggesting a rise in the momentum, with a bearish bias. The Parabolic SAR continues with its sell signal with a SL of 5340.
5) Considering the above, our trading plan for the day is as under.
a) Above 5285, we will open fresh long positions with a SL of 5275 and a target of 5325.
b) Below 5275, we will open fresh short positions with a SL of 5285 and a target of 5230.
c) We will wait patiently for these levels to arrive. If not, we would enjoy watching the markets from the sidelines.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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