With the Nifty nearing key supports, the next trend may be decided today.As discussed yesterday, the expiry jitters were felt, as the Nifty whipsawed between 5540 and 5470, which were the levels identified by us yesterday. Today, given the global cues, the Nifty is likely to open with a positive bias.1) The Elder Ray readings : Bull Power reduces from +197 to +97 Bear Power increases from +59 to +21, indicating that the Bears have been gaining strength for last 3 sessions, however, they are still not in their own zone.2) The Nifty is now trading below the 8EMA but is above all the rest key EMAs and DMAs indicating that if the Bulls don't takeover soon, the trend might change in the favour of the Bears.3) The stochastics are now out of the overbought zone and are clearly pointing downwards. One more warning signal for the Bulls.4) In the above chart, the volumes were quite high in yesterday's minor decline. The Parabolic SAR which was supporting a up-move till yesterday, has suddenly started resisting the same, indicating that a big down-move can be forming shortly. The MACD is showing clear negative divergence and the ADX is also indicating the strengthening of the down move and weakening of the up move.5) Considering the above, our trading plan for the day is as undera) Around 5530, we will open fresh short positions with a SL of 5555 and a target of 5445. We will add to these short positions only below 5420.b) Around 5435, we will open fresh long positions with a SL of 5425 and a target of 5525. We will add to these long positions only above 5560.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty nearing key supports, the next trend may be decided today.
As discussed yesterday, the expiry jitters were felt, as the Nifty whipsawed between 5540 and 5470, which were the levels identified by us yesterday. Today, given the global cues, the Nifty is likely to open with a positive bias.
1) The Elder Ray readings : Bull Power reduces from +197 to +97 Bear Power increases from +59 to +21, indicating that the Bears have been gaining strength for last 3 sessions, however, they are still not in their own zone.
2) The Nifty is now trading below the 8EMA but is above all the rest key EMAs and DMAs indicating that if the Bulls don't takeover soon, the trend might change in the favour of the Bears.
3) The stochastics are now out of the overbought zone and are clearly pointing downwards. One more warning signal for the Bulls.
4) In the above chart, the volumes were quite high in yesterday's minor decline. The Parabolic SAR which was supporting a up-move till yesterday, has suddenly started resisting the same, indicating that a big down-move can be forming shortly. The MACD is showing clear negative divergence and the ADX is also indicating the strengthening of the down move and weakening of the up move.
5) Considering the above, our trading plan for the day is as under
a) Around 5530, we will open fresh short positions with a SL of 5555 and a target of 5445. We will add to these short positions only below 5420.
b) Around 5435, we will open fresh long positions with a SL of 5425 and a target of 5525. We will add to these long positions only above 5560.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
It will be prudent to wait for a fresh signal, on the day of expiry.As discussed yesterday, the Nifty was being held high by the Bulls for the first half of the trading session. However, towards the end, selling emerged and got stronger, closing the Nifty with a loss of 102 points. Is this the end of the up-move? Will the selling continue? These are questions that will be answered by end of the day today. It is better to wait for that signal, instead of anticipating.1) The Elder Ray readings : Bull Power reduces from +201 to +197 Bear Power increases from +141 to +59 indicating that although the Bears have increased their power, follow up selling is required to take them into their safety zone. Bulls on the other hand have not lost much.2) The Nifty has taken support yesterday at 5493 which is the 8EMA. The 200 DMA has also flattened out, indicating "wait for signal"3) The stochastics have just moved out of the overbought zone and are now pointing downwards.4) In the above chart, the volumes have increased in yesterday's fall, indicating the first signals of a downtrend emerging. The MACD is not yet giving any negative divergence, and the ADX is signalling loss of positive momentum and gain in negative momentum. However a fresh sell signal has not yet emerged on the ADX.5) Considering the above, our trading plan for the day is as undera) Below 5540, we will open fresh short positions with a SL of 5570 and a target of 5470. We will add to these short positions below 5440.b) Above 5480, we will open fresh long positions with a SL of 5465 and a target of 5535. We will add to these long positions above 5575.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
It will be prudent to wait for a fresh signal, on the day of expiry.
As discussed yesterday, the Nifty was being held high by the Bulls for the first half of the trading session. However, towards the end, selling emerged and got stronger, closing the Nifty with a loss of 102 points. Is this the end of the up-move? Will the selling continue? These are questions that will be answered by end of the day today. It is better to wait for that signal, instead of anticipating.
1) The Elder Ray readings : Bull Power reduces from +201 to +197 Bear Power increases from +141 to +59 indicating that although the Bears have increased their power, follow up selling is required to take them into their safety zone. Bulls on the other hand have not lost much.
2) The Nifty has taken support yesterday at 5493 which is the 8EMA. The 200 DMA has also flattened out, indicating "wait for signal"
3) The stochastics have just moved out of the overbought zone and are now pointing downwards.
4) In the above chart, the volumes have increased in yesterday's fall, indicating the first signals of a downtrend emerging. The MACD is not yet giving any negative divergence, and the ADX is signalling loss of positive momentum and gain in negative momentum. However a fresh sell signal has not yet emerged on the ADX.
5) Considering the above, our trading plan for the day is as under
a) Below 5540, we will open fresh short positions with a SL of 5570 and a target of 5470. We will add to these short positions below 5440.
b) Above 5480, we will open fresh long positions with a SL of 5465 and a target of 5535. We will add to these long positions above 5575.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As expiry approaches, the Nifty will be held high by the Bulls.As discussed yesterday, the up move continued on the Nifty, with the Nifty closing with a gain of 43 points. The expiry of the current series is just two sessions away, and the Bears are a beaten down lot. This will enable the Bulls to hold the Nifty high, even if they are not able to cross even higher hurdles.1) The Elder Ray readings : Bull Power reduces from +217 to +201 Bear Power increases from +155 to +141, indicating that the Bears although were able to open the Nifty in the red, thereby gaining some strength, were not able to sustain it and the Bulls once again closed the Nifty in the positive.2) The Nifty continues to trade well above its key EMAs and DMAs. The 200 DMA has now actually started to turn upwards.3) The stochastics are still in the overbought zone, and are showing no indications of coming below.4) In the above chart, the Bollinger Bands are clearly pointing upwards, with a small space for the Nifty to rise. The MACD is rising and is in the positive, confirming the up-move. The ADX is suggesting that the up-move may not sustain for long now.5) Considering the above, our trading plan for the day is as undera) Above 5595, we will open fresh long positions with a SL of 5575 and a target of 5645. We will add to these long positions only above 5670.b) Around 5665, we will open fresh short positions with a SL of 5685 and a target of 5600. We will add to these short positions only below 5570.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As expiry approaches, the Nifty will be held high by the Bulls.
As discussed yesterday, the up move continued on the Nifty, with the Nifty closing with a gain of 43 points. The expiry of the current series is just two sessions away, and the Bears are a beaten down lot. This will enable the Bulls to hold the Nifty high, even if they are not able to cross even higher hurdles.
1) The Elder Ray readings : Bull Power reduces from +217 to +201 Bear Power increases from +155 to +141, indicating that the Bears although were able to open the Nifty in the red, thereby gaining some strength, were not able to sustain it and the Bulls once again closed the Nifty in the positive.
2) The Nifty continues to trade well above its key EMAs and DMAs. The 200 DMA has now actually started to turn upwards.
3) The stochastics are still in the overbought zone, and are showing no indications of coming below.
4) In the above chart, the Bollinger Bands are clearly pointing upwards, with a small space for the Nifty to rise. The MACD is rising and is in the positive, confirming the up-move. The ADX is suggesting that the up-move may not sustain for long now.
5) Considering the above, our trading plan for the day is as under
a) Above 5595, we will open fresh long positions with a SL of 5575 and a target of 5645. We will add to these long positions only above 5670.
b) Around 5665, we will open fresh short positions with a SL of 5685 and a target of 5600. We will add to these short positions only below 5570.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty uptrend seems likely to continue unabated.As discussed on Friday, it was Bulls all the way, throughout the session, with the Nifty never ever coming below its opening mark and then closing with a gain of 42 points. Today, given the global cues, the Nifty is likely to open even higher and then stay afloat for yet another winning day.1) The Elder Ray readings : Bull Power rises from +171 to +217 Bear Power reduces from +123 to +156 indicating that there is really no point in trading with the Bears or expecting the Bears to move in for the kill, unless they are able to close the Nifty below the previous day's low for two consecutive days.2) The Nifty continues to trade well above the 200 DMA and all its other key EMAs and key DMAs. 3) The stochastics continue to remain in the overbought zone with no signs of drifting downwards.4) In the above chart, the volumes keep on increasing with the Nifty showing no signs of falling, indicating the strength in the upwards momentum. The MACD is reaching the peak, but is showing no weakness, while the ADX maintains its indication of a strengthening up-move.5) Considering the above, our trading plan for the day is as undera) Above 5575, we will open fresh long positions with a SL of 5550 and a target of 5635. We will add to these long positions only above 5675.b) Around 5655, we will open fresh short positions with a SL of 5680 and a target of 5580. We will add to these short positions only below 5545.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty uptrend seems likely to continue unabated.
As discussed on Friday, it was Bulls all the way, throughout the session, with the Nifty never ever coming below its opening mark and then closing with a gain of 42 points. Today, given the global cues, the Nifty is likely to open even higher and then stay afloat for yet another winning day.
1) The Elder Ray readings : Bull Power rises from +171 to +217 Bear Power reduces from +123 to +156 indicating that there is really no point in trading with the Bears or expecting the Bears to move in for the kill, unless they are able to close the Nifty below the previous day's low for two consecutive days.
2) The Nifty continues to trade well above the 200 DMA and all its other key EMAs and key DMAs.
3) The stochastics continue to remain in the overbought zone with no signs of drifting downwards.
4) In the above chart, the volumes keep on increasing with the Nifty showing no signs of falling, indicating the strength in the upwards momentum. The MACD is reaching the peak, but is showing no weakness, while the ADX maintains its indication of a strengthening up-move.
5) Considering the above, our trading plan for the day is as under
a) Above 5575, we will open fresh long positions with a SL of 5550 and a target of 5635. We will add to these long positions only above 5675.
b) Around 5655, we will open fresh short positions with a SL of 5680 and a target of 5580. We will add to these short positions only below 5545.
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.
