Nifty continues to drift downwards as the bearish mood persists.
As discussed yesterday, we saw the Nifty turn volatile as it opened with a positive gap of more than 30 points and then climbing higher into the resistance zone and then giving away all the gains and also breaking previous day's low, only to close with a minor gain of 0.15 point. Our plan (a) hit its target and our plan (b) also yielded a small profit of 20 points.
1) The Elder Ray readings : Bull Power rises from -60 to -27 Bear Power reduces from -103 to -93 indicating that the Bears seem to be exhausted but the Bulls seem not too keen to take advantage yet. For today, the Bulls need to overcome the levels of 5635 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.
2) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics are in the oversold zone, but are not pointing upwards yet.
4) In the above chart the volumes have increased with the Nifty remaining stagnant, indicating of increased participation and tightening of the trading range. The MACD continues to fall. The ADX is showing some loss of momentum for the Bears but the downward move is still the favored direction. The Parabolic SAR continues to give out its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5605 we will open fresh short positions with a SL of 5625 and a target of 5550. We will add to these short positions only below 5525.
b) Around 5535 we will open fresh long positions with a SL of 5525 and a target of 5575. We will add to these long positions only above 5625.
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 saw the Nifty turn volatile as it opened with a positive gap of more than 30 points and then climbing higher into the resistance zone and then giving away all the gains and also breaking previous day's low, only to close with a minor gain of 0.15 point. Our plan (a) hit its target and our plan (b) also yielded a small profit of 20 points.
1) The Elder Ray readings : Bull Power rises from -60 to -27 Bear Power reduces from -103 to -93 indicating that the Bears seem to be exhausted but the Bulls seem not too keen to take advantage yet. For today, the Bulls need to overcome the levels of 5635 to regain their lost grounds whereas the Bears need to breach the levels of 5540 to maintain their downwards momentum.
2) The Nifty continues to close below all its key EMAs and also below its 50DMA. However, it has closed above its 100DMA and 200DMA.
3) The stochastics are in the oversold zone, but are not pointing upwards yet.
4) In the above chart the volumes have increased with the Nifty remaining stagnant, indicating of increased participation and tightening of the trading range. The MACD continues to fall. The ADX is showing some loss of momentum for the Bears but the downward move is still the favored direction. The Parabolic SAR continues to give out its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5605 we will open fresh short positions with a SL of 5625 and a target of 5550. We will add to these short positions only below 5525.
b) Around 5535 we will open fresh long positions with a SL of 5525 and a target of 5575. We will add to these long positions only above 5625.
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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