With the Nifty likely to open higher, the mantra will be 'sell on rise'.As discussed in our last post, the Nifty opened gap down, and then traded in the negative. All throughout the day, it whipsawed between 5240 and 5170 ( which is the 200DMA) before closing flat. Today, given the global cues, the Nifty is likely to open with a nice positive gap up, but will have to survive bouts of selling at higher levels, which if it crosses, then a new Bull Run could be starting. But if it fails, then the Bears will get charged up, and we could see the Nifty drifting downwards.1) The Elder Ray readings : Bull Power reduces from +32 to -88 Bear Power increases from -144 to -160, indicating that the Bulls are now a weakened lot, and any up gaps would be quickly sold into, unless the Bulls stage a spectacular comeback.2) The Nifty is still trading between its key EMAs and key DMAs. All the 3 key EMAs are now clustered at around 5320, which can be used as a major resistance point for the Nifty.3) The stochastics are deeply into the oversold zone, indicating that the short term bearish move has not ended yet.4) In the above chart, the volumes have decreased on the last day, indicating lack of participation. The MACD is still in the positive and is declining, confirming the short term bear run. The ADX is also indicating strengthening of a down move and weakening of the up-move. The Parabolic SAR is still confirming its sell signal.5) Considering the above, our trading plan for the day is as undera) Around 5320, we will open fresh short positions with a SL of 5350 and a target of 5220. We will add to these short positions only below 5200.b) Above, 5355, we will open fresh long positions with a SL of 5325 and a target of 5410. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty likely to open higher, the mantra will be 'sell on rise'.
As discussed in our last post, the Nifty opened gap down, and then traded in the negative. All throughout the day, it whipsawed between 5240 and 5170 ( which is the 200DMA) before closing flat. Today, given the global cues, the Nifty is likely to open with a nice positive gap up, but will have to survive bouts of selling at higher levels, which if it crosses, then a new Bull Run could be starting. But if it fails, then the Bears will get charged up, and we could see the Nifty drifting downwards.
1) The Elder Ray readings : Bull Power reduces from +32 to -88 Bear Power increases from -144 to -160, indicating that the Bulls are now a weakened lot, and any up gaps would be quickly sold into, unless the Bulls stage a spectacular comeback.
2) The Nifty is still trading between its key EMAs and key DMAs. All the 3 key EMAs are now clustered at around 5320, which can be used as a major resistance point for the Nifty.
3) The stochastics are deeply into the oversold zone, indicating that the short term bearish move has not ended yet.
4) In the above chart, the volumes have decreased on the last day, indicating lack of participation. The MACD is still in the positive and is declining, confirming the short term bear run. The ADX is also indicating strengthening of a down move and weakening of the up-move. The Parabolic SAR is still confirming its sell signal.
5) Considering the above, our trading plan for the day is as under
a) Around 5320, we will open fresh short positions with a SL of 5350 and a target of 5220. We will add to these short positions only below 5200.
b) Above, 5355, we will open fresh long positions with a SL of 5325 and a target of 5410.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The downtrend can accelerate today, unless the Bulls come into action.On 26 Feb we said "Selling to continue". On 02 Mar we said "Negative bias to stay". Next on 03 Mar, we said Nifty was searching for direction. Then on 05 Mar we expected a "Big move round the corner". And finally, yesterday we said "Wild swings ahead". We are grateful that the Nifty did oblige, and we were able to navigate through the turmoil largely successfully, booking profits along the way.Today, given the global cues, the Nifty is likely to open with a large negative gap down. The overall short term scenario looks largely bearish at present.1) The Elder Ray readings : Bull Power increases from -27 t +32 Bear Power also increases from -106 to -144 indicating that the Bears are in a greater strength now, and a further downfall on the Nifty cannot be ruled out.2) The Nifty continues to trade between its key EMAs and its key DMAs. However the EMAs are pointing downwards, indicating a short term downtrend.3) The stochastics are deeply in the oversold zone, indicating that a bounce back cannot be ruled out at this stage.4) In the above chart, the volumes have increased during yesterday's wild swinging fall, indicating larger participation in the down move. The MACD is still in the positive and falling, indicating continuation of the downtrend. The ADX is holding onto its sell signal, but is indicating a slowdown in the downward momentum. The Parabolic SAR also continues to give out a sell signal.5) Considering the above, our trading plan for the day is as under,a) Below 5200, we will open fresh short positions with a SL of 5230 and a target of 5130. We will add to these short positions below 5110.b) Around 5120, we will open fresh long positions with a SL of 5110, and a target of 5190. We will add to these long positions above 5240.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The downtrend can accelerate today, unless the Bulls come into action.
On 26 Feb we said "Selling to continue". On 02 Mar we said "Negative bias to stay". Next on 03 Mar, we said Nifty was searching for direction. Then on 05 Mar we expected a "Big move round the corner". And finally, yesterday we said "Wild swings ahead".
We are grateful that the Nifty did oblige, and we were able to navigate through the turmoil largely successfully, booking profits along the way.
Today, given the global cues, the Nifty is likely to open with a large negative gap down. The overall short term scenario looks largely bearish at present.
1) The Elder Ray readings : Bull Power increases from -27 t +32 Bear Power also increases from -106 to -144 indicating that the Bears are in a greater strength now, and a further downfall on the Nifty cannot be ruled out.
2) The Nifty continues to trade between its key EMAs and its key DMAs. However the EMAs are pointing downwards, indicating a short term downtrend.
3) The stochastics are deeply in the oversold zone, indicating that a bounce back cannot be ruled out at this stage.
4) In the above chart, the volumes have increased during yesterday's wild swinging fall, indicating larger participation in the down move. The MACD is still in the positive and falling, indicating continuation of the downtrend. The ADX is holding onto its sell signal, but is indicating a slowdown in the downward momentum. The Parabolic SAR also continues to give out a sell signal.
5) Considering the above, our trading plan for the day is as under,
a) Below 5200, we will open fresh short positions with a SL of 5230 and a target of 5130. We will add to these short positions below 5110.
b) Around 5120, we will open fresh long positions with a SL of 5110, and a target of 5190. We will add to these long positions above 5240.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty can be extremely volatile as the current downtrend approaches key supports.As discussed yesterday, the Big move came in right from the start, and the open and high on the Nifty remained the same throughout the trading session. Today, the Nifty is likely to open flat to negative, but is likely to swing wildly in a big range as the immediate trend is downwards within a upwards medium trend, and the Nifty is tightly squeezed right in the middle.1) The Elder Ray readings : Bull Power reduces from -17 to -27 Bear Power increases from -34 to -106 indicating that the Bears are in control of the Nifty as of now.2) The key EMAs on the Nifty are pointing downwards and the Nifty is trading well below its key EMAs. However, the 50 and 100 DMAs are pointing upwards and are stacked up favoring the Bulls.3) The stochastics are deeply in the oversold zone and suggest very little room for a further fall.4) In the above chart, the volumes were lesser in yesterday's fall, indicating the lack of participation in the bearish move yesterday. The MACD histogram continues to grow in the negative, indicating a bearish move ahead. The ADX is giving out a fresh sustainable sell signal. And the Parabolic SAR remains bearish.5) Considering the above, our trading plan for the day is as under.a) Below 5300, we will open fresh short positions with a SL of 5325 and a target of 5240. We will add to these short positions below 5205.b) Around 5235, we will open fresh long positions with a SL of 5205 and a target of 5325. We will add to these long positions above 5355.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty can be extremely volatile as the current downtrend approaches key supports.
As discussed yesterday, the Big move came in right from the start, and the open and high on the Nifty remained the same throughout the trading session. Today, the Nifty is likely to open flat to negative, but is likely to swing wildly in a big range as the immediate trend is downwards within a upwards medium trend, and the Nifty is tightly squeezed right in the middle.
1) The Elder Ray readings : Bull Power reduces from -17 to -27 Bear Power increases from -34 to -106 indicating that the Bears are in control of the Nifty as of now.
2) The key EMAs on the Nifty are pointing downwards and the Nifty is trading well below its key EMAs. However, the 50 and 100 DMAs are pointing upwards and are stacked up favoring the Bulls.
3) The stochastics are deeply in the oversold zone and suggest very little room for a further fall.
4) In the above chart, the volumes were lesser in yesterday's fall, indicating the lack of participation in the bearish move yesterday. The MACD histogram continues to grow in the negative, indicating a bearish move ahead. The ADX is giving out a fresh sustainable sell signal. And the Parabolic SAR remains bearish.
5) Considering the above, our trading plan for the day is as under.
a) Below 5300, we will open fresh short positions with a SL of 5325 and a target of 5240. We will add to these short positions below 5205.
b) Around 5235, we will open fresh long positions with a SL of 5205 and a target of 5325. We will add to these long positions above 5355.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
After 5 days of consolidation, a big move expected any time now.As discussed on Saturday, the Nifty kept on searching for direction, and moved in a narrow range of about 10 points. Today, given the global cues, the Nifty is likely to open flat with a slightly negative bias. It will be interesting to see which way the tide turns today.1) The Elder Ray readings : Bull Power is at -17 and Bear Power is at -34 indicating that the Bears have a slight advantage over the next move.2) The Nifty is trading below its key EMAs but is above its key DMAs, indicating a short term downtrend within a larger uptrend.3) The stochastics are hovering just above the oversold zone, indicating that there is small room for a downfall.4) In the above chart, the MACD is in the positive and is falling, indicating a short term downtrend ahead. The ADX is also indicating that a big sustainable move is round the corner, but is mute on the direction. The Parabolic SAR is also indicating a downward movement for the Nifty.5) Considering the above, our trading plan for the day is as undera) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5310. We will add to these short positions below 5290.b) Around 5300, we will open fresh long positions with a SL of 5290 and a target of 5355. We will add to these long positions only above 5425.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
After 5 days of consolidation, a big move expected any time now.
As discussed on Saturday, the Nifty kept on searching for direction, and moved in a narrow range of about 10 points. Today, given the global cues, the Nifty is likely to open flat with a slightly negative bias. It will be interesting to see which way the tide turns today.
1) The Elder Ray readings : Bull Power is at -17 and Bear Power is at -34 indicating that the Bears have a slight advantage over the next move.
2) The Nifty is trading below its key EMAs but is above its key DMAs, indicating a short term downtrend within a larger uptrend.
3) The stochastics are hovering just above the oversold zone, indicating that there is small room for a downfall.
4) In the above chart, the MACD is in the positive and is falling, indicating a short term downtrend ahead. The ADX is also indicating that a big sustainable move is round the corner, but is mute on the direction. The Parabolic SAR is also indicating a downward movement for the Nifty.
5) Considering the above, our trading plan for the day is as under
a) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5310. We will add to these short positions below 5290.
b) Around 5300, we will open fresh long positions with a SL of 5290 and a target of 5355. We will add to these long positions only above 5425.
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.
