AD Code

Friday 27 January 2012

Nifty - 27 Jan 2012 - Bulls on the roll

Nifty likely to move higher on a fresh start of a new series.

This is a fresh start to a fresh series. In the last series, the Bears have been butchered all the way with not even one session meaningfully closing in their favor. The Bulls have run away with more than 10% gain in just one month. The trend is likely to continue as per the technical charts.

1) The Elder Ray readings :Bull Power increases from +196 to +198 Bear Power reduces from +104 to +154, indicating that the Bears are just out of the picture, and that the Bulls are having the market swing the way they want to. 

2) The Nifty is trading above all its key EMAs and also above its 50 and 100 DMAs. The 200 DMA which is now at 5210 is in striking distance for the Bulls and could be the next level to watch out for.

3) The stochastics are still in the overbought zone, and have remained so for the last 13 trading sessions. This should become now a key indicator to watch out for a trend reversal.



4) In the above chart, the Nifty has formed a star doji indicating indecision by the Bulls at least. The volumes have risen in last trading session. The Nifty is almost leaving the upper Bollinger Band indicating that a down trend may be in the offing. This is confirmed by the overbought MACD and the rising ADX. However, we will wait for a reversal signal to actually happen before we take that view.

5) Considering the above, we will watch out for 5210 which is the key level for today.

a) Below 5210, we will open fresh short positions with a SL of 5240 and a target of 5130. We will add to these short positions below 5100 only.

b) Above 5145, we will open fresh long positions with a SL of 5130 and a target of 5200. We will add to these long positions above 5235 only.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 27 Jan 2012 - Bulls on the roll

Nifty likely to move higher on a fresh start of a new series.

This is a fresh start to a fresh series. In the last series, the Bears have been butchered all the way with not even one session meaningfully closing in their favor. The Bulls have run away with more than 10% gain in just one month. The trend is likely to continue as per the technical charts.

1) The Elder Ray readings :Bull Power increases from +196 to +198 Bear Power reduces from +104 to +154, indicating that the Bears are just out of the picture, and that the Bulls are having the market swing the way they want to. 

2) The Nifty is trading above all its key EMAs and also above its 50 and 100 DMAs. The 200 DMA which is now at 5210 is in striking distance for the Bulls and could be the next level to watch out for.

3) The stochastics are still in the overbought zone, and have remained so for the last 13 trading sessions. This should become now a key indicator to watch out for a trend reversal.



4) In the above chart, the Nifty has formed a star doji indicating indecision by the Bulls at least. The volumes have risen in last trading session. The Nifty is almost leaving the upper Bollinger Band indicating that a down trend may be in the offing. This is confirmed by the overbought MACD and the rising ADX. However, we will wait for a reversal signal to actually happen before we take that view.

5) Considering the above, we will watch out for 5210 which is the key level for today.

a) Below 5210, we will open fresh short positions with a SL of 5240 and a target of 5130. We will add to these short positions below 5100 only.

b) Above 5145, we will open fresh long positions with a SL of 5130 and a target of 5200. We will add to these long positions above 5235 only.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Wednesday 25 January 2012

Nifty - 25 Jan 2012 - Expect a volatile session

Having the Nifty risen consistently throughout the month, expect volatility today.

As discussed yesterday, all eyes were on the RBI monetary policy, and the Nifty traded nervously before that announcement, after which the Bulls never let go. Today being the expiry of the series, some volatility is expected on the bourses, although the trend is likely to have a positive bias.

1)  The Elder Ray readings : Bull Power increases from +144 to +196 Bear Power also increases from +106 to +104, indicating that the Bulls have run away now and the Bears are caught watching.

2) On the EMA front, the charts remain the same with the Nifty trading above all its key EMAs and also above its 50 & 100 DMAs. The 200 DMA stands at 5214 and that will be a key level to watch out for now.

3) The stochastics have had a extended stay in the overbought zone. However, they are showing no signs of retreat as yet.



4) In the above chart, the volumes have increased in yesterday's up-move. The MACD is touching its peak and the ADX is also signalling a uptrend, however with the rising neutral ADX, the sustainability of this uptrend will be questionable going forward.

5) Considering the above, our trading plan for the day is as under,

a) Above 5080, we will open fresh long positions with a SL of 5060 and a target of 5140. We will add to these long positions only above 5175.

b) Around 5170, we will open fresh short positions with a SL of 5185 and a target of 5100. We will add to these short positions only below 5055.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 25 Jan 2012 - Expect a volatile session

Having the Nifty risen consistently throughout the month, expect volatility today.

As discussed yesterday, all eyes were on the RBI monetary policy, and the Nifty traded nervously before that announcement, after which the Bulls never let go. Today being the expiry of the series, some volatility is expected on the bourses, although the trend is likely to have a positive bias.

1)  The Elder Ray readings : Bull Power increases from +144 to +196 Bear Power also increases from +106 to +104, indicating that the Bulls have run away now and the Bears are caught watching.

2) On the EMA front, the charts remain the same with the Nifty trading above all its key EMAs and also above its 50 & 100 DMAs. The 200 DMA stands at 5214 and that will be a key level to watch out for now.

3) The stochastics have had a extended stay in the overbought zone. However, they are showing no signs of retreat as yet.



4) In the above chart, the volumes have increased in yesterday's up-move. The MACD is touching its peak and the ADX is also signalling a uptrend, however with the rising neutral ADX, the sustainability of this uptrend will be questionable going forward.

5) Considering the above, our trading plan for the day is as under,

a) Above 5080, we will open fresh long positions with a SL of 5060 and a target of 5140. We will add to these long positions only above 5175.

b) Around 5170, we will open fresh short positions with a SL of 5185 and a target of 5100. We will add to these short positions only below 5055.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Tuesday 24 January 2012

Nifty - 24 Jan 2012 - All eyes on RBI action

Highly overbought Nifty fall may get triggered if RBI disappoints.

With the expiry of the current series nearing, and the RBI announcing monetary policy today, the markets would be on the edge at the start of the session today. Technically, the Nifty is in the overbought zone but having defended the downturn for almost the entire month, the Bulls are unlikely to give away on the last two days of this series.

1) The Elder Ray readings : Bull Power reduces from +171 to +144 Bear Power increases from +111 to +106. Bears need a very big move to return to their own territory, and that is highly unlikely given the mood of the market. On the other hand, the Bulls seem to have exhausted by this prolonged up-move. 

2) The Nifty continues to trade above its key EMAs and also above its 50 and 100 DMAs. 

3) The stochastics are in highly overbought zone, but are not showing any signs of a downturn as yet.



4) In the above chart, the volumes have again depleted, indicating lack of participation in the market. The Nifty is seen leaving the upper Bollinger Band, indicating a possible start of a downturn. The MACD is also at its peak and the ADX is showing weakening of the up-move.

5) Considering the above, our trading plan for the day is as under

a) Below 5065 we will open fresh short positions with a SL of 5090 and a target of 5025. We will add to these short positions only below 5005.

b) Above 5010 we will open fresh long positions with a SL of 4990 and a target of 5060. We wll add to these long positions only above 5100.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 24 Jan 2012 - All eyes on RBI action

Highly overbought Nifty fall may get triggered if RBI disappoints.

With the expiry of the current series nearing, and the RBI announcing monetary policy today, the markets would be on the edge at the start of the session today. Technically, the Nifty is in the overbought zone but having defended the downturn for almost the entire month, the Bulls are unlikely to give away on the last two days of this series.

1) The Elder Ray readings : Bull Power reduces from +171 to +144 Bear Power increases from +111 to +106. Bears need a very big move to return to their own territory, and that is highly unlikely given the mood of the market. On the other hand, the Bulls seem to have exhausted by this prolonged up-move. 

2) The Nifty continues to trade above its key EMAs and also above its 50 and 100 DMAs. 

3) The stochastics are in highly overbought zone, but are not showing any signs of a downturn as yet.



4) In the above chart, the volumes have again depleted, indicating lack of participation in the market. The Nifty is seen leaving the upper Bollinger Band, indicating a possible start of a downturn. The MACD is also at its peak and the ADX is showing weakening of the up-move.

5) Considering the above, our trading plan for the day is as under

a) Below 5065 we will open fresh short positions with a SL of 5090 and a target of 5025. We will add to these short positions only below 5005.

b) Above 5010 we will open fresh long positions with a SL of 4990 and a target of 5060. We wll add to these long positions only above 5100.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Monday 23 January 2012

Nifty - 23 Jan 2012 - Expiry jitters start

Huge volatility could be seen on the Nifty prior to expiry

As discussed in our last post, the Bulls exhibited their full control over the Nifty, and recovered all the intra-day losses to close the Nifty with a gain of 30 points. The Nifty opened with a gap up and the Bears were unable to pull down the Nifty to those gaps. Now we have three runaway gaps unfilled in this current series, which could play a roadblock to this Bull run.

1) The Elder Ray readings : Bull Power rises from +156 to +171 Bear Power also rises from +124 to +111 indicating that the market is currently in no man's land. However the Bulls are still strong and the Bears have a huge challenge to get back into their own territory.

2) The Nifty is trading well above its key EMAs and also above its 50 & 100 DMAs.

3) The stochastics are still in the overbought zone, and have remained their now for 9 consecutive trading sessions. It is high time for the Nifty to exhibit a downtrend now.



4) In the above chart, the Nifty is trading since last 4 sessions touching the upper Bollinger Band. The volumes on this rise are increasing. The MACD is also rising and the ADX is suggesting a continuation of the uptrend.

5) Considering the above, our trading plan for the day is as under

a) Around 5080, we will open fresh short positions with a SL of 5105 and a target of 5010. We will add to these short positions only below 4965.

b) Around 5005, we will open fresh long positions with a SL of 4990 and a target of 5075. We will add to these long positions only above 5015.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE

Nifty - 23 Jan 2012 - Expiry jitters start

Huge volatility could be seen on the Nifty prior to expiry

As discussed in our last post, the Bulls exhibited their full control over the Nifty, and recovered all the intra-day losses to close the Nifty with a gain of 30 points. The Nifty opened with a gap up and the Bears were unable to pull down the Nifty to those gaps. Now we have three runaway gaps unfilled in this current series, which could play a roadblock to this Bull run.

1) The Elder Ray readings : Bull Power rises from +156 to +171 Bear Power also rises from +124 to +111 indicating that the market is currently in no man's land. However the Bulls are still strong and the Bears have a huge challenge to get back into their own territory.

2) The Nifty is trading well above its key EMAs and also above its 50 & 100 DMAs.

3) The stochastics are still in the overbought zone, and have remained their now for 9 consecutive trading sessions. It is high time for the Nifty to exhibit a downtrend now.



4) In the above chart, the Nifty is trading since last 4 sessions touching the upper Bollinger Band. The volumes on this rise are increasing. The MACD is also rising and the ADX is suggesting a continuation of the uptrend.

5) Considering the above, our trading plan for the day is as under

a) Around 5080, we will open fresh short positions with a SL of 5105 and a target of 5010. We will add to these short positions only below 4965.

b) Around 5005, we will open fresh long positions with a SL of 4990 and a target of 5075. We will add to these long positions only above 5015.

Happy Trading !!! 

For cash market recommendations see our Daily Pre Market calls on NSE
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.