Nifty may continue trading within a tight range.As discussed yesterday, it was a day of consolidation on the Nifty, with the Bulls failing to take it above the previous day's high and the Bears failing to break the previous day's low. Today, the Nifty is likely to open with a negative bias, but buying could emerge at lower levels.1) The Elder Ray readings : Bull Power reduces from +65 to +58 Bear Power increases from +11 to +8. This is giving mixed indications that the Bulls are losing momentum but are safe in the positive zone, whereas the Bears are gaining strength but are in the opponents territory.2) The EMAs are pointing upwards and the Nifty is trading above key EMAs, however, the EMAs are stacked in favour of the Bears, indicating a downtrend may resume soon. The DMAs are pointing downwards.3) The stochastics are almost touching the overbought zone.4) In the above chart, the Bollinger Bands are squeezing, indicating consolidation phase. The MACD is giving out a positive divergence, whereas the ADX is indicating a directionless market as of now.5) Based on the above, our trading plan for the day is as undera) Above 4725, we will open fresh long positions with a SL of 4710 and a target of 4770. We will add to these positions only above 4790.b) Around, 4785, we will open fresh short positions with a SL of 4790 and a target of 4730. We will add to these short positions only below 4700.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may continue trading within a tight range.
As discussed yesterday, it was a day of consolidation on the Nifty, with the Bulls failing to take it above the previous day's high and the Bears failing to break the previous day's low. Today, the Nifty is likely to open with a negative bias, but buying could emerge at lower levels.
1) The Elder Ray readings : Bull Power reduces from +65 to +58 Bear Power increases from +11 to +8. This is giving mixed indications that the Bulls are losing momentum but are safe in the positive zone, whereas the Bears are gaining strength but are in the opponents territory.
2) The EMAs are pointing upwards and the Nifty is trading above key EMAs, however, the EMAs are stacked in favour of the Bears, indicating a downtrend may resume soon. The DMAs are pointing downwards.
3) The stochastics are almost touching the overbought zone.
4) In the above chart, the Bollinger Bands are squeezing, indicating consolidation phase. The MACD is giving out a positive divergence, whereas the ADX is indicating a directionless market as of now.
5) Based on the above, our trading plan for the day is as under
a) Above 4725, we will open fresh long positions with a SL of 4710 and a target of 4770. We will add to these positions only above 4790.
b) Around, 4785, we will open fresh short positions with a SL of 4790 and a target of 4730. We will add to these short positions only below 4700.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty hitting into resistance, a day of consolidation lies aheadAs discussed yesterday, the strong rally ran into resistance and the Nifty saw some profit booking at higher levels before closing with a minor loss of 15 points. Today, the Nifty is likely to open flat with a negative bias, but may find strong support around 4700 4685 levels and a strong resistance at 4760 4785 zone.1) The Elder Ray readings :Bull Power increases from +61 to +65 and the Bear Power reduces from -36 to +11, indicating that the Bulls are gaining but with less force and that the Bears are now in the unsafe positive zone. This scenario points to a struggle for position between the Bulls and the Bears.2) The Nifty is trading just above the 21EMA, however, the 8 13 and 21 EMAs are still stacked in favour of the Bears. The DMAs continue to point downwards.3) The stochastics are nearing the overbought zone, indicating some more room for an up-move.4) In the above chart, the volumes have started to increase with the Nifty not marching ahead, indicating a consolidation phase. The MACD is indicating strength for the up-move, whereas the ADX is suggesting that it is "no man's" market as yet.5) Considering the above, our trading plan for the day is as undera) Above 4705, we will initiate fresh long positions with a SL of 4685 and a target of 4765. We will add to these long positions only above 4815.b) Around 4775, we will initiate fresh short positions with a SL of 4810 and a target of 4690. We will add to these short positions only below 4660.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty hitting into resistance, a day of consolidation lies ahead
As discussed yesterday, the strong rally ran into resistance and the Nifty saw some profit booking at higher levels before closing with a minor loss of 15 points. Today, the Nifty is likely to open flat with a negative bias, but may find strong support around 4700 4685 levels and a strong resistance at 4760 4785 zone.
1) The Elder Ray readings :Bull Power increases from +61 to +65 and the Bear Power reduces from -36 to +11, indicating that the Bulls are gaining but with less force and that the Bears are now in the unsafe positive zone. This scenario points to a struggle for position between the Bulls and the Bears.
2) The Nifty is trading just above the 21EMA, however, the 8 13 and 21 EMAs are still stacked in favour of the Bears. The DMAs continue to point downwards.
3) The stochastics are nearing the overbought zone, indicating some more room for an up-move.
4) In the above chart, the volumes have started to increase with the Nifty not marching ahead, indicating a consolidation phase. The MACD is indicating strength for the up-move, whereas the ADX is suggesting that it is "no man's" market as yet.
5) Considering the above, our trading plan for the day is as under
a) Above 4705, we will initiate fresh long positions with a SL of 4685 and a target of 4765. We will add to these long positions only above 4815.
b) Around 4775, we will initiate fresh short positions with a SL of 4810 and a target of 4690. We will add to these short positions only below 4660.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The strong rally on the Nifty may well get arrested soon as it runs into resistance.Unlike our discussion yesterday, the Bears gave away much of their control, and the Bulls took off with a strong rally of about 90 points adding on to the positive gap of about 40 points. Today, given the global cues, the Nifty is likely to open in the positive, but selling pressure may be seen soon, and the Bulls have their work cut out in defending their long positions.1) The Elder Ray readings : Bull Power increases from -57 to +61 Bear Power reduces from -115 to -36. The Bulls have recovered their lost ground and are in the positive. However, the Bears are still in their zone and cannot be ignored as yet. A huge increase in volatility may be on the cards as of now.2) The Nifty has closed above its key EMAs but is still trading below key DMAs. 3) The fast stochastics are almost touching the overbought zone. However, the slow stochastics are still in the neutral zone and are trailing well behind, indicating that the rally may lose strength but can continue for a couple of sessions still.4) In the above chart, the volumes have increased in yesterday's rally confirming continuation of the up-move. The MACD is showing an abrupt rise, raising suspicion on the sustainability of the up-move. The ADX is still continuing with its sell on rally signal and has not given out a buy signal as yet.5) Considering the above, our trading plan for the day is as undera) Above 4755, we will open fresh long positions with a SL of 4740 and a target of 4810. We will add to these long positions only above 4840.b) Below 4820, we will open fresh short positions with a SL of 4835 and a target of 4710. We will add to these short positions only below 4685.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The strong rally on the Nifty may well get arrested soon as it runs into resistance.
Unlike our discussion yesterday, the Bears gave away much of their control, and the Bulls took off with a strong rally of about 90 points adding on to the positive gap of about 40 points. Today, given the global cues, the Nifty is likely to open in the positive, but selling pressure may be seen soon, and the Bulls have their work cut out in defending their long positions.
1) The Elder Ray readings : Bull Power increases from -57 to +61 Bear Power reduces from -115 to -36. The Bulls have recovered their lost ground and are in the positive. However, the Bears are still in their zone and cannot be ignored as yet. A huge increase in volatility may be on the cards as of now.
2) The Nifty has closed above its key EMAs but is still trading below key DMAs.
3) The fast stochastics are almost touching the overbought zone. However, the slow stochastics are still in the neutral zone and are trailing well behind, indicating that the rally may lose strength but can continue for a couple of sessions still.
4) In the above chart, the volumes have increased in yesterday's rally confirming continuation of the up-move. The MACD is showing an abrupt rise, raising suspicion on the sustainability of the up-move. The ADX is still continuing with its sell on rally signal and has not given out a buy signal as yet.
5) Considering the above, our trading plan for the day is as under
a) Above 4755, we will open fresh long positions with a SL of 4740 and a target of 4810. We will add to these long positions only above 4840.
b) Below 4820, we will open fresh short positions with a SL of 4835 and a target of 4710. We will add to these short positions only below 4685.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty at the lower end of its current trading range, Bears still rule.As discussed yesterday, the downtrend on the Nifty continued for a major part of the trading session, with the Nifty ending at 4637, unable to cross the day's high established in the morning trade. Today, the Nifty is likely to open in the flat to positive zone, but again at a bit high selling may emerge.1) The Elder Ray readings :Bull Power reduces from -24 to -57 Bear Power rises from -105 to -115 indicating that the Bears are still in control, and that any rise should be used for opening short positions on the Nifty.2) The EMAs and the DMAs are still pointing downwards. The 8EMA and the 13EMA stand at 4678 and 4703 respectively and can be used as pointers for opening short positions.3) The stochastics are in the neutral zone and are pointing towards a directionless market.4) In the above chart, the volumes have depleted indicating lack of participation. The MACD is pointing towards a directionless markets, but the ADX is hinting at the downtrend getting stronger.5) Considering the above, our trading plan for the day is as undera) Below 4680, we will open fresh short positions with a SL of 4710 and a target of 4605. We will add to these short positions only below 4575.b) Above 4590, we will open fresh long positions with a SL of 4575 and a target of 4640. We will add to these long positions only above 4715.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty at the lower end of its current trading range, Bears still rule.
As discussed yesterday, the downtrend on the Nifty continued for a major part of the trading session, with the Nifty ending at 4637, unable to cross the day's high established in the morning trade. Today, the Nifty is likely to open in the flat to positive zone, but again at a bit high selling may emerge.
1) The Elder Ray readings :Bull Power reduces from -24 to -57 Bear Power rises from -105 to -115 indicating that the Bears are still in control, and that any rise should be used for opening short positions on the Nifty.
2) The EMAs and the DMAs are still pointing downwards. The 8EMA and the 13EMA stand at 4678 and 4703 respectively and can be used as pointers for opening short positions.
3) The stochastics are in the neutral zone and are pointing towards a directionless market.
4) In the above chart, the volumes have depleted indicating lack of participation. The MACD is pointing towards a directionless markets, but the ADX is hinting at the downtrend getting stronger.
5) Considering the above, our trading plan for the day is as under
a) Below 4680, we will open fresh short positions with a SL of 4710 and a target of 4605. We will add to these short positions only below 4575.
b) Above 4590, we will open fresh long positions with a SL of 4575 and a target of 4640. We will add to these long positions only above 4715.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With lackluster participation, the downtrend on the nifty might continue today.As discussed on Friday, the bearishness on the Nifty set in, and the Nifty closed at 4624 after showing a high of 4690 during the trading session. Today, given the global cues, the Nifty is likely to open with a negative bias, and may test the near supports o 4560.1) The Elder Ray readings : Bull Power increases from -28 to -24 Bear Power also increases from -90 to -105, indicating that the Bears are still in control, and may pull down the market aggressively today.2) The EMAs and the DMAs continue to point downwards, showing no respite to the Nifty.3) The stochastics are in the neutral zone and are pointing downwards, indicating continued downtrend.4) In the above chart, the volumes are depleting indicating lack of participation in the markets. the MACD is in the positive but is declining, the ADX is also indicating strengthening of the downtrend.5) Considering the above, our trading plan for the day is as under,a) Below 4670, we will open fresh short positions with a SL of 4700 and a target of 4580. We will add to these short positions only below 4565.b) Above 4575, we will open fresh long positions with a SL of 4565 and a target of 4635. We will add to these long positions only above 4705.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With lackluster participation, the downtrend on the nifty might continue today.
As discussed on Friday, the bearishness on the Nifty set in, and the Nifty closed at 4624 after showing a high of 4690 during the trading session. Today, given the global cues, the Nifty is likely to open with a negative bias, and may test the near supports o 4560.
1) The Elder Ray readings : Bull Power increases from -28 to -24 Bear Power also increases from -90 to -105, indicating that the Bears are still in control, and may pull down the market aggressively today.
2) The EMAs and the DMAs continue to point downwards, showing no respite to the Nifty.
3) The stochastics are in the neutral zone and are pointing downwards, indicating continued downtrend.
4) In the above chart, the volumes are depleting indicating lack of participation in the markets. the MACD is in the positive but is declining, the ADX is also indicating strengthening of the downtrend.
5) Considering the above, our trading plan for the day is as under,
a) Below 4670, we will open fresh short positions with a SL of 4700 and a target of 4580. We will add to these short positions only below 4565.
b) Above 4575, we will open fresh long positions with a SL of 4565 and a target of 4635. We will add to these long positions only above 4705.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
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Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.
