Bulls do not show follow up buying, Bears trying to get their foot in.
As discussed yesterday, Bulls tried to take away the Nifty, however a lack of follow up buying ensured that the Nifty got bogged down and breached the previous day's lows before finally closing with a loss of 13 points. Our trading plan (a) got triggered and we were able to book out at the end of day with a profit of 10 points.
1) The Elder Ray readings : Bull Power reduces from +72 to +63 Bear Power rises from +43 to +7 indicating that if the Bulls do not act now, the Bears will regain their footing. For today, the Bulls need to overcome the levels of 5950 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5880 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are just below the overbought zone and are pointing downwards now.
4) In the above chart the volumes have decreased with the fall in the Nifty indicating that this could just be profit booking. The MACD has again turned negative indicating that this could be start of a new down move. The ADX is also suggesting a loss of momentum for the up move and a gain in momentum for the down move. The Parabolic SAR continues with its sell call with a SL at 5949 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5885 we will open fresh long positions with a SL of 5870 and a target of 5940. We will add to these long positions only above 5965.
b) Around 5945 we will open fresh short positions with a SL of 5965 and a target of 5910. We will add to these short positions only below 5870.
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, Bulls tried to take away the Nifty, however a lack of follow up buying ensured that the Nifty got bogged down and breached the previous day's lows before finally closing with a loss of 13 points. Our trading plan (a) got triggered and we were able to book out at the end of day with a profit of 10 points.
1) The Elder Ray readings : Bull Power reduces from +72 to +63 Bear Power rises from +43 to +7 indicating that if the Bulls do not act now, the Bears will regain their footing. For today, the Bulls need to overcome the levels of 5950 to maintain their upwards momentum whereas the Bears need to breach the Nifty below 5880 to regain their lost grounds.
2) The Nifty has closed above all its key EMAs and also above all its key DMAs.
3) The stochastics are just below the overbought zone and are pointing downwards now.
4) In the above chart the volumes have decreased with the fall in the Nifty indicating that this could just be profit booking. The MACD has again turned negative indicating that this could be start of a new down move. The ADX is also suggesting a loss of momentum for the up move and a gain in momentum for the down move. The Parabolic SAR continues with its sell call with a SL at 5949 now.
5) Considering the above, our trading plan for the day is as under.
a) Around 5885 we will open fresh long positions with a SL of 5870 and a target of 5940. We will add to these long positions only above 5965.
b) Around 5945 we will open fresh short positions with a SL of 5965 and a target of 5910. We will add to these short positions only below 5870.
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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