Having recaptured their safe zone, Bears need to follow through now.
As discussed on Friday, the Bulls lacked follow up action and the Nifty opened with a negative gap of 28 points and never looked up. The Open & High remained the same for the entire session, indicating that the Bulls had given up. In the end, the Nifty closed at 5848 with a loss of 69 points. Part (b) of our trading plan (b) triggered right in the morning and we could book out with a small profit of 20 points by the end of the trading session.
1) The Elder Ray readings : Bull Power reduces from +63 to +17 Bear Power rises from +7 to -29 indicating that the Bears have now regained their lost grounds and need to drag the Bulls out of their territory. For today, the Bulls need to overcome the levels of 5895 to retain their upwards momentum whereas the Bears need to breach the levels of 5835 to retain their downwards momentum.
2) The Nifty has now closed below its 8EMA and its 13EMA, however it has closed just above its 21EMA (5841) and also above all its key DMAs.
3) The fast stochastics have almost reached the oversold zone, whereas the slow stochastics are languishing way back near the overbought zone, indicating that some more downfall on the Nifty.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD has now given a sell signal and the histogram has also turned negative. The ADX is also suggesting a rise in the downwards momentum. The Parabolic SAR continues with its Sell signal with the SL now at 5944.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh short positions with a SL of 5895 and a target of 5835. We will add to these short positions only below 5800.
b) Around 5820 we will open fresh long positions with a SL of 5800 and a target of 5860. We will add to these long positions only above 5895.
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 on Friday, the Bulls lacked follow up action and the Nifty opened with a negative gap of 28 points and never looked up. The Open & High remained the same for the entire session, indicating that the Bulls had given up. In the end, the Nifty closed at 5848 with a loss of 69 points. Part (b) of our trading plan (b) triggered right in the morning and we could book out with a small profit of 20 points by the end of the trading session.
1) The Elder Ray readings : Bull Power reduces from +63 to +17 Bear Power rises from +7 to -29 indicating that the Bears have now regained their lost grounds and need to drag the Bulls out of their territory. For today, the Bulls need to overcome the levels of 5895 to retain their upwards momentum whereas the Bears need to breach the levels of 5835 to retain their downwards momentum.
2) The Nifty has now closed below its 8EMA and its 13EMA, however it has closed just above its 21EMA (5841) and also above all its key DMAs.
3) The fast stochastics have almost reached the oversold zone, whereas the slow stochastics are languishing way back near the overbought zone, indicating that some more downfall on the Nifty.
4) In the above chart, the volumes have increased with the fall in the Nifty indicating that the fall may continue. The MACD has now given a sell signal and the histogram has also turned negative. The ADX is also suggesting a rise in the downwards momentum. The Parabolic SAR continues with its Sell signal with the SL now at 5944.
5) Considering the above, our trading plan for the day is as under.
a) Around 5875 we will open fresh short positions with a SL of 5895 and a target of 5835. We will add to these short positions only below 5800.
b) Around 5820 we will open fresh long positions with a SL of 5800 and a target of 5860. We will add to these long positions only above 5895.
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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