With the Nifty hovering at resistances, a downtrend may emerge soon.As discussed yesterday, the Nifty traded both-ways in an undecided market. Today, the Nifty is likely to open with a slight positive bias and may trade in a narrow range.1) The Elder Ray readings : Bull Power reduces from +113 to +95 Bear Power rises from +77 to +30 Bulls will have to defend 4775 level to prevent the Bears from returning to their safe zone, making it a key level to watch out for.2) The key EMAs are pointing upwards, and the Nifty is trading right between the EMAs and the DMAs.3) The stochastics are in the overbought zone and have now remained in the overbought zone for 3 consecutive trading sessions.4) In the above chart, the volumes have increased in yesterday's negative close. The Nifty is moving away from the upper Bollinger Band, suggesting the start of a down move. The MACD is rising still, pointing at the continuation of the current up-move. And the ADX is giving out a sustainable sell signal.5) Considering the above, our trading plan for the day is as undera) Above 4795, we will open fresh long positions with a SL of 4770 and a target of 4870. We will add to these long positions only above 4895.b) Below 4880, we will open fresh short positions with a SL of 4890 and a target of 4795. We will add to these short positions only below 4765.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty hovering at resistances, a downtrend may emerge soon.
As discussed yesterday, the Nifty traded both-ways in an undecided market. Today, the Nifty is likely to open with a slight positive bias and may trade in a narrow range.
1) The Elder Ray readings : Bull Power reduces from +113 to +95 Bear Power rises from +77 to +30 Bulls will have to defend 4775 level to prevent the Bears from returning to their safe zone, making it a key level to watch out for.
2) The key EMAs are pointing upwards, and the Nifty is trading right between the EMAs and the DMAs.
3) The stochastics are in the overbought zone and have now remained in the overbought zone for 3 consecutive trading sessions.
4) In the above chart, the volumes have increased in yesterday's negative close. The Nifty is moving away from the upper Bollinger Band, suggesting the start of a down move. The MACD is rising still, pointing at the continuation of the current up-move. And the ADX is giving out a sustainable sell signal.
5) Considering the above, our trading plan for the day is as under
a) Above 4795, we will open fresh long positions with a SL of 4770 and a target of 4870. We will add to these long positions only above 4895.
b) Below 4880, we will open fresh short positions with a SL of 4890 and a target of 4795. We will add to these short positions only below 4765.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
After a big leap, the Nifty is waiting for the next big move.As discussed yesterday, the up-move on the Nifty continued, but was met with resistance at higher levels, and the Nifty was not able to topple 4880. Today, the markets are likely to open flat and are likely to consolidate again.1) The Elder Ray readings : Bull Power rises from +108 to +113 Bear Power reduces from +20 to +77, indicating that the Bears are now in the opponents territory, and the Bulls have grasped their breath, after a big effort two days ago. 2) The key EMAs are pointing upwards and are also indicating a buy signal for the short term. However, the Nifty is trading just below its 50DMA which is at 4867. This is a key level to watch out for.3) The stochastics are deep in the overbought zone and the fast stochastics are pointing downwards. However, again it must be noted, that the stochastics can remain in the overbought zone over a prolonged period.4) In the above chart, the volumes have increased in yesterday's closed ranged market, indicating build up of shorts in the system. The Nifty is touching the upper Bollinger Band, indicating that the market is in the overbought zone. The ADX is signalling a Buy.5) Considering the above, we find that there is not enough head room for the Nifty to suggest opening of fresh longs. Also there are no indications that fresh shorts can be opened as yet. Hence, we will refrain from trading the Nifty for today and wait for a clear signal at the end of the day.Happy Trading !! For cash market recommendations see our Daily Pre Market calls on NSE
After a big leap, the Nifty is waiting for the next big move.
As discussed yesterday, the up-move on the Nifty continued, but was met with resistance at higher levels, and the Nifty was not able to topple 4880. Today, the markets are likely to open flat and are likely to consolidate again.
1) The Elder Ray readings : Bull Power rises from +108 to +113 Bear Power reduces from +20 to +77, indicating that the Bears are now in the opponents territory, and the Bulls have grasped their breath, after a big effort two days ago.
2) The key EMAs are pointing upwards and are also indicating a buy signal for the short term. However, the Nifty is trading just below its 50DMA which is at 4867. This is a key level to watch out for.
3) The stochastics are deep in the overbought zone and the fast stochastics are pointing downwards. However, again it must be noted, that the stochastics can remain in the overbought zone over a prolonged period.
4) In the above chart, the volumes have increased in yesterday's closed ranged market, indicating build up of shorts in the system. The Nifty is touching the upper Bollinger Band, indicating that the market is in the overbought zone. The ADX is signalling a Buy.
5) Considering the above, we find that there is not enough head room for the Nifty to suggest opening of fresh longs. Also there are no indications that fresh shorts can be opened as yet. Hence, we will refrain from trading the Nifty for today and wait for a clear signal at the end of the day.
Happy Trading !!
For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty staging a breakout, the bullish trend may stay for a while.As discussed during our last few posts, the Nifty was in a consolidation mood, and we were awaiting the next big move out of the trading range. This move came yesterday, with a big bang and the Nifty staged a breakout. While this up-trend may continue for a while, there are dangers ahead, and it will be interesting how the markets tackle these.1) The Elder Ray readings : Bull Power rises from +27 to +108 Bear Power reduces from -36 to +20. This indicates that the Bears have lost their ground again and that the Bulls are in control. 2) The key EMAs are now pointing upwards and the Nifty is trading well above the EMAs. However, the DMAs are still pointing downwards. That is one of the dangers that lies ahead. The 50DMA is at 4877 and pointing downwards.3) The stochastics are deep into the overbought zone. Another danger sign. However, it should be noted that the stochastics can stay in the overbought zone for a extended period in a strongly bullish market.4) In the above chart, the Nifty is touching the upper Bollinger Band, indicating a hurdle ahead. The volumes in yesterday's rise have increased, confirming the up-trend. The MACD is rising, which is also a support to the up-trend. However, the ADX is suggesting that the downtrend still has left some steam.5) Considering the above, our trading plan for the day is as undera) Above 4825, we will open fresh long positions with a SL of 4800 and a target of 4880. We will add to these long positions only above 4910.b) Below 4880, we will open fresh short positions with a SL of 4905 and a target of 4835. We will add to these short positions only below 4790.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty staging a breakout, the bullish trend may stay for a while.
As discussed during our last few posts, the Nifty was in a consolidation mood, and we were awaiting the next big move out of the trading range. This move came yesterday, with a big bang and the Nifty staged a breakout. While this up-trend may continue for a while, there are dangers ahead, and it will be interesting how the markets tackle these.
1) The Elder Ray readings : Bull Power rises from +27 to +108 Bear Power reduces from -36 to +20. This indicates that the Bears have lost their ground again and that the Bulls are in control.
2) The key EMAs are now pointing upwards and the Nifty is trading well above the EMAs. However, the DMAs are still pointing downwards. That is one of the dangers that lies ahead. The 50DMA is at 4877 and pointing downwards.
3) The stochastics are deep into the overbought zone. Another danger sign. However, it should be noted that the stochastics can stay in the overbought zone for a extended period in a strongly bullish market.
4) In the above chart, the Nifty is touching the upper Bollinger Band, indicating a hurdle ahead. The volumes in yesterday's rise have increased, confirming the up-trend. The MACD is rising, which is also a support to the up-trend. However, the ADX is suggesting that the downtrend still has left some steam.
5) Considering the above, our trading plan for the day is as under
a) Above 4825, we will open fresh long positions with a SL of 4800 and a target of 4880. We will add to these long positions only above 4910.
b) Below 4880, we will open fresh short positions with a SL of 4905 and a target of 4835. We will add to these short positions only below 4790.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is still in the consolidating phase.As discussed yesterday, the Nifty remained directionless, and closed with a modest loss of 4 points. This trend-less gyration on the Nifty may continue for a while before either a breakout or a break down occurs. It is still better to wait for the markets to take a turn, and still better not to hazard a prediction.1) The Elder Ray readings : Bull Power reduces from +30 to +27 Bear Power increases from +13 to -36 indicating that the Bears are regaining their lost grounds. Also is clear that with both the Bulls and the Bears being equidistant from each other and safe in their own territories, it will be dangerous to predict a winner of the next round at this stage.2) The key EMAs are pointing upwards whereas the DMAs are pointing downwards. Here again a signal for directionless markets.3) The stochastics are just leaving the overbought zone and are pointing downwards, indicating a downtrend may occur from hereon.4) In the above chart, the Bollinger Bands have flattened out, indicating a consolidating market. The volumes are depleting, confirming this consolidation. The MACD is suggesting strength to the up-move, whereas the ADX is suggesting strength to the down-move.5) Considering the above, we will yet again refrain from trading the Nifty for yet another day today. It is better to be safe than sorry.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is still in the consolidating phase.
As discussed yesterday, the Nifty remained directionless, and closed with a modest loss of 4 points. This trend-less gyration on the Nifty may continue for a while before either a breakout or a break down occurs. It is still better to wait for the markets to take a turn, and still better not to hazard a prediction.
1) The Elder Ray readings : Bull Power reduces from +30 to +27 Bear Power increases from +13 to -36 indicating that the Bears are regaining their lost grounds. Also is clear that with both the Bulls and the Bears being equidistant from each other and safe in their own territories, it will be dangerous to predict a winner of the next round at this stage.
2) The key EMAs are pointing upwards whereas the DMAs are pointing downwards. Here again a signal for directionless markets.
3) The stochastics are just leaving the overbought zone and are pointing downwards, indicating a downtrend may occur from hereon.
4) In the above chart, the Bollinger Bands have flattened out, indicating a consolidating market. The volumes are depleting, confirming this consolidation. The MACD is suggesting strength to the up-move, whereas the ADX is suggesting strength to the down-move.
5) Considering the above, we will yet again refrain from trading the Nifty for yet another day today. It is better to be safe than sorry.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may remain range-bound within its current trading range.As we have been discussing for the last few days, the Nifty has been consolidating in a very narrow range, with a few bouts of volatility. The same may continue for another day today. The markets seem to be waiting for a trigger to breakout from this range. It is better to let the markets decide the direction instead of trying to predict it.1) The Elder Ray readings : Bull Power reduces from +58 to +30 Bear Power also reduces from +8 to +13 indicating that there is loss of momentum for both the Bulls and the Bears, and opening a position in such an environment can prove to be hasty and nasty.2) The EMAs continue to point upwards, but are stacked in favour of the Bears. The DMAs continue to point downwards.3) The stochastics are in the overbought zone and are pointing downwards, indicating that the downtrend may start soon.4) In the above chart, the Bollinger Bands are flattening, indicating a consolidation phase on the Nifty. The MACD is in the negative and rising, indicating bullishness. However, the ADX is favouring the Bears.5) Considering the above, we will avoid trading on the Nifty for a day today, and wait for the market to decide the direction and a clear signal to emerge.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty may remain range-bound within its current trading range.
As we have been discussing for the last few days, the Nifty has been consolidating in a very narrow range, with a few bouts of volatility. The same may continue for another day today. The markets seem to be waiting for a trigger to breakout from this range. It is better to let the markets decide the direction instead of trying to predict it.
1) The Elder Ray readings : Bull Power reduces from +58 to +30 Bear Power also reduces from +8 to +13 indicating that there is loss of momentum for both the Bulls and the Bears, and opening a position in such an environment can prove to be hasty and nasty.
2) The EMAs continue to point upwards, but are stacked in favour of the Bears. The DMAs continue to point downwards.
3) The stochastics are in the overbought zone and are pointing downwards, indicating that the downtrend may start soon.
4) In the above chart, the Bollinger Bands are flattening, indicating a consolidation phase on the Nifty. The MACD is in the negative and rising, indicating bullishness. However, the ADX is favouring the Bears.
5) Considering the above, we will avoid trading on the Nifty for a day today, and wait for the market to decide the direction and a clear signal to emerge.
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.
