In-spite of the big move yesterday, Nifty still in trading mode. Sell on rise stays.
As discussed yesterday, we were expecting the Nifty to resolve either Breakout or Breakdown. We also expected a big move after a few days of consolidation. The big move came, however, the Nifty did not breach 5720 on the upside and it just scraped at 5640 on the downside before closing at 5648. This makes us believe that we are still in a trading mode without any strong trend, and it is still sell on rise and buy on dips as yet.
1) The Elder Ray readings : Bull Power rises from +18 to +42 Bear Power also rises from -25 to -36, indicative of the equal strength on both sides and also confirming the lack of direction. For today, the Bulls need to overcome the levels of 5715 to maintain their upwards momentum whereas the Bears need to breach the levels of 5626 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA (5681) and 13EMA (5672) but above its 21EMA (5637) and has closed above all its key DMAs.
3) The stochastics are still in the overbought zone, indicating that yesterday's Bear attempt has failed to bring the stochastics below the overbought zone.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the down move may sustain. The MACD continues to fall, indicating that the down move is gaining strength. The ADX however, is suggesting that the up move is slightly gaining momentum, and the down move is losing momentum. The Parabolic SAR continues with its sell signal with a SL at 5714, which was the Day's High Point yesterday.
5) Considering the above, our trading plan for the day is as under.
a) Below 5695 we will open fresh short positions with a SL of 5715 and a target of 5640. We will add to these short positions only below 5605.
b) Around 5625 we will open fresh long positions with a SL of 5605 and a target of 5675. We will add to these long positions only above 5715.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we were expecting the Nifty to resolve either Breakout or Breakdown. We also expected a big move after a few days of consolidation. The big move came, however, the Nifty did not breach 5720 on the upside and it just scraped at 5640 on the downside before closing at 5648. This makes us believe that we are still in a trading mode without any strong trend, and it is still sell on rise and buy on dips as yet.
1) The Elder Ray readings : Bull Power rises from +18 to +42 Bear Power also rises from -25 to -36, indicative of the equal strength on both sides and also confirming the lack of direction. For today, the Bulls need to overcome the levels of 5715 to maintain their upwards momentum whereas the Bears need to breach the levels of 5626 to maintain their downwards momentum.
2) The Nifty has closed below its 8EMA (5681) and 13EMA (5672) but above its 21EMA (5637) and has closed above all its key DMAs.
3) The stochastics are still in the overbought zone, indicating that yesterday's Bear attempt has failed to bring the stochastics below the overbought zone.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the down move may sustain. The MACD continues to fall, indicating that the down move is gaining strength. The ADX however, is suggesting that the up move is slightly gaining momentum, and the down move is losing momentum. The Parabolic SAR continues with its sell signal with a SL at 5714, which was the Day's High Point yesterday.
5) Considering the above, our trading plan for the day is as under.
a) Below 5695 we will open fresh short positions with a SL of 5715 and a target of 5640. We will add to these short positions only below 5605.
b) Around 5625 we will open fresh long positions with a SL of 5605 and a target of 5675. We will add to these long positions only above 5715.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
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