Nifty seems to be getting in hands of weak Bulls. Bears not strong either.
As discussed yesterday, it turned out to be a critical trading session, during which we were expecting to find further direction to the trend. However, what we got was an inside day, where in the Nifty, in spite of getting a positive up gap of 20 points, was not able to make further gains on that, and sold off from there. However, the Bears too were not able to breach previous day's lows and the Nifty clawed back from 5875 to close at 5888 with a loss of 10 points.
1) The Elder Ray readings : Bull Power reduces from +130 to +82 Bear Power also reduces from +30 to +32 indicating that the market is losing momentum as yet. For today, the Bulls need to overcome the levels of 5935 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5850 to regain their lost grounds.
2) The Nifty continues to trade above all its key EMAs and also above all its key DMAs.
3) The stochastics are in the overbought zone and are threatening to fall away.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the down move may continue. The MACD continues to give a negative divergence, with the histogram reducing. The ADX is also suggesting a weakening of the Bulls. The Parabolic SAR continues with its buy signal with a SL of 5835.
5) Considering the above, our trading plan for the day is as under.
a) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5875. We will add to these short positions only below 5840.
b) Around 5860 we will open fresh long positions with a SL of 5840 and a target of 5900. We will add to these long positions only above 5935.
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, it turned out to be a critical trading session, during which we were expecting to find further direction to the trend. However, what we got was an inside day, where in the Nifty, in spite of getting a positive up gap of 20 points, was not able to make further gains on that, and sold off from there. However, the Bears too were not able to breach previous day's lows and the Nifty clawed back from 5875 to close at 5888 with a loss of 10 points.
1) The Elder Ray readings : Bull Power reduces from +130 to +82 Bear Power also reduces from +30 to +32 indicating that the market is losing momentum as yet. For today, the Bulls need to overcome the levels of 5935 to maintain their upwards momentum, whereas the Bears need to breach the levels of 5850 to regain their lost grounds.
2) The Nifty continues to trade above all its key EMAs and also above all its key DMAs.
3) The stochastics are in the overbought zone and are threatening to fall away.
4) In the above chart, the volumes have increased with the fall in the Nifty, indicating that the down move may continue. The MACD continues to give a negative divergence, with the histogram reducing. The ADX is also suggesting a weakening of the Bulls. The Parabolic SAR continues with its buy signal with a SL of 5835.
5) Considering the above, our trading plan for the day is as under.
a) Around 5920 we will open fresh short positions with a SL of 5935 and a target of 5875. We will add to these short positions only below 5840.
b) Around 5860 we will open fresh long positions with a SL of 5840 and a target of 5900. We will add to these long positions only above 5935.
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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