The best way to trade today is to avoid new positions and hold existing ones.The best strategy for today would be to ignore the market movements all together, as these would be knee jerk reactions. Remember, the market is always ahead of the news. There will always be other better opportunities to trade.However, we would keep in mind the day's range and the broader range for the Nifty in mind. These ranges are 5325 - 5435 (narrower) and 5200-5550 (broader). We may initiate fresh positions with a 20 point stop loss and a 80 point target around this key values. In the above chart, the volumes have depleted, indicating lack of interest in market participants. The MACD is resuming its downtrend after a minor reversal signal. The ADX is showing a trend-less market and a weakening of the up-move and a strengthening of the down-move. However the Parabolic SAR continues to hold the buy signal.
Overall, we will be extremely bullish around 5200 and extremely bearish around 5550. On such days, it will be futile to predetermine any trading plan. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The best way to trade today is to avoid new positions and hold existing ones.
The best strategy for today would be to ignore the market movements all together, as these would be knee jerk reactions. Remember, the market is always ahead of the news. There will always be other better opportunities to trade.
However, we would keep in mind the day's range and the broader range for the Nifty in mind. These ranges are 5325 - 5435 (narrower) and 5200-5550 (broader). We may initiate fresh positions with a 20 point stop loss and a 80 point target around this key values.
In the above chart, the volumes have depleted, indicating lack of interest in market participants. The MACD is resuming its downtrend after a minor reversal signal. The ADX is showing a trend-less market and a weakening of the up-move and a strengthening of the down-move. However the Parabolic SAR continues to hold the buy signal.
Overall, we will be extremely bullish around 5200 and extremely bearish around 5550.
On such days, it will be futile to predetermine any trading plan.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is like to still be volatile, as the next trend tries to emerge.As discussed yesterday, it was a volatile day, with the Nifty opening at a high and then immediately hitting roadblocks. However, the Bulls were able to successfully defend the previous day's lows and were able to maintain their positive momentum at the end of the day. Today the Nifty is likely to open slightly in the negative and a range bound volatility could be on for the day.1) The Elder Ray readings : Bull Power rises from +89 to +134 Bear Power reduces from +41 to +72 indicating that the Bulls are in control as of now. However, to retain their momentum, the Bulls will have to cross 5510 intraday. To maintain their space in their own territory, the Bulls will have to defend 5380, failing which, the Bears will regain their lost territory.2) The Nifty is trading above its key EMAs and key DMAs. All of them have started pointing upwards, indicating that the current trend is in favor of the Bulls.3) The stochastics are almost touching the overbought zone, indicating that a trend reversal might be lurking round the corner.4) In the above chart, the MACD is showing a positive divergence, which is suggesting that the Bulls are in favor. The Parabolic SAR continues with its Buy signal. However, the ADX is suggesting a range bound movement, with a bias towards up-move.5) Considering the above, our trading plan for the day is as under.a) Around 5430, we will open fresh long positions with a SL of 5410 and a target of 5500. We will add to these long positions above 5520.b) Around 5500, we will open fresh short positions with a SL of 5515 and a target of 5430. We will add to these short positions below 5410.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The Nifty is like to still be volatile, as the next trend tries to emerge.
As discussed yesterday, it was a volatile day, with the Nifty opening at a high and then immediately hitting roadblocks. However, the Bulls were able to successfully defend the previous day's lows and were able to maintain their positive momentum at the end of the day. Today the Nifty is likely to open slightly in the negative and a range bound volatility could be on for the day.
1) The Elder Ray readings : Bull Power rises from +89 to +134 Bear Power reduces from +41 to +72 indicating that the Bulls are in control as of now. However, to retain their momentum, the Bulls will have to cross 5510 intraday. To maintain their space in their own territory, the Bulls will have to defend 5380, failing which, the Bears will regain their lost territory.
2) The Nifty is trading above its key EMAs and key DMAs. All of them have started pointing upwards, indicating that the current trend is in favor of the Bulls.
3) The stochastics are almost touching the overbought zone, indicating that a trend reversal might be lurking round the corner.
4) In the above chart, the MACD is showing a positive divergence, which is suggesting that the Bulls are in favor. The Parabolic SAR continues with its Buy signal. However, the ADX is suggesting a range bound movement, with a bias towards up-move.
5) Considering the above, our trading plan for the day is as under.
a) Around 5430, we will open fresh long positions with a SL of 5410 and a target of 5500. We will add to these long positions above 5520.
b) Around 5500, we will open fresh short positions with a SL of 5515 and a target of 5430. We will add to these short positions below 5410.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty set to open with a positive gap and hit road blocks ahead.As discussed yesterday, the Nifty was mostly range bound, barring the spike of the gap up and the first minute trade. After that the Nifty traded for the entire day in a range of 25 to 30 points. The Bulls had the full control of the session, and any attempts to sell were bought off swiftly. Today, given the global cues, the Nifty is likely to gap up, but then some profit booking can emerge.1) The Elder Ray readings : Bull Power rises from +86 to +89 Bear Power reduces from -9 to +41, indicating that the Bears are now in the opponents territory, and may attempt a comeback.2) The key EMAs on the Nifty are now pointing up and are supportive of a bull run. The 200DMA continues to fall a bit even now.3) The Stochastics are fast approaching the overbought zone. This indicates that there is still some more room for a up move.4) In the above chart, the volumes have decreased in yesterday's trade, indicating lack of participation. The MACD is still falling. The ADX is indicating weakening of the up-move and also is suggesting range bound trading on the Nifty. The Parabolic SAR maintains its Buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5510, we will open fresh shorts with a SL of 5525 and a target of 5435. We will add to these short positions only below 5405.b) Around 5440, we will open fresh long positions with a SL of 5415 and a target of 5500. We will add to these long positions only above 5530.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty set to open with a positive gap and hit road blocks ahead.
As discussed yesterday, the Nifty was mostly range bound, barring the spike of the gap up and the first minute trade. After that the Nifty traded for the entire day in a range of 25 to 30 points. The Bulls had the full control of the session, and any attempts to sell were bought off swiftly. Today, given the global cues, the Nifty is likely to gap up, but then some profit booking can emerge.
1) The Elder Ray readings : Bull Power rises from +86 to +89 Bear Power reduces from -9 to +41, indicating that the Bears are now in the opponents territory, and may attempt a comeback.
2) The key EMAs on the Nifty are now pointing up and are supportive of a bull run. The 200DMA continues to fall a bit even now.
3) The Stochastics are fast approaching the overbought zone. This indicates that there is still some more room for a up move.
4) In the above chart, the volumes have decreased in yesterday's trade, indicating lack of participation. The MACD is still falling. The ADX is indicating weakening of the up-move and also is suggesting range bound trading on the Nifty. The Parabolic SAR maintains its Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5510, we will open fresh shorts with a SL of 5525 and a target of 5435. We will add to these short positions only below 5405.
b) Around 5440, we will open fresh long positions with a SL of 5415 and a target of 5500. We will add to these long positions only above 5530.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to remain largely range bound as key events are awaited.Yesterday, we suggested, "Beware of the whipsaw" and it proved apt for the trading session. The Nifty opened with a large up gap of 86 points, and immediately dwindled down before one could blink an eye. It whipsawed the entire day, before closing with modest gains of 26 points. Today, the Nifty is likely to open flat and once more likely to gyrate within the current trading range of 5250 to 5400.1) The Elder Ray readings : Bull Power rises from +10 to +86 Bear Power falls from -41 to -9 indicating that the Bears have started weakening but are still safe in their negative zone and cannot be counted out as yet.2) The Nifty is trading well above all its key EMAs and key DMAs now, and this indicates that any dips now should be used to cut outstanding short positions if any.3) The Stochastics are now in the neutral zone just above the oversold zone and are pointing upwards.4) In the above chart, the volumes have only just slightly increased in yesterday's fall. The MACD is still in the positive and falling. The Histogram is rising. Both indicating indecision among market participants. The ADX too is indicating a weak trend and is supportive of a range bound trade in the Nifty.5) Considering the above, our trading plan for the day is as under.a) Around 5335, we will open fresh long positions with a SL of 5310 and a target of 5390. We will add to these long positions only above 5440.b) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5440. We will add to these short positions only below 5305.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Nifty to remain largely range bound as key events are awaited.
Yesterday, we suggested, "Beware of the whipsaw" and it proved apt for the trading session. The Nifty opened with a large up gap of 86 points, and immediately dwindled down before one could blink an eye. It whipsawed the entire day, before closing with modest gains of 26 points. Today, the Nifty is likely to open flat and once more likely to gyrate within the current trading range of 5250 to 5400.
1) The Elder Ray readings : Bull Power rises from +10 to +86 Bear Power falls from -41 to -9 indicating that the Bears have started weakening but are still safe in their negative zone and cannot be counted out as yet.
2) The Nifty is trading well above all its key EMAs and key DMAs now, and this indicates that any dips now should be used to cut outstanding short positions if any.
3) The Stochastics are now in the neutral zone just above the oversold zone and are pointing upwards.
4) In the above chart, the volumes have only just slightly increased in yesterday's fall. The MACD is still in the positive and falling. The Histogram is rising. Both indicating indecision among market participants. The ADX too is indicating a weak trend and is supportive of a range bound trade in the Nifty.
5) Considering the above, our trading plan for the day is as under.
a) Around 5335, we will open fresh long positions with a SL of 5310 and a target of 5390. We will add to these long positions only above 5440.
b) Around 5400, we will open fresh short positions with a SL of 5420 and a target of 5440. We will add to these short positions only below 5305.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty stuck in congestion zone, beware of the whipsaw.The expected selling did not emerge on Friday, although through out the session the Nifty, even after a good up gap opening, failed to cross 5340 emphatically. Today also, given the global cues, and the CRR cut announced by the RBI, the Nifty is likely to open with a positive gap. But once again, at higher levels, it is likely to meet with some fierce selling.1) The Elder Ray readings : Bull Power rises from -88 to +10 Bear Power reduces from -160 to -41. This indicates that both the Bulls and the Bears are safe in their own territories, and both will have a big challenge on their hands, to drag the Nifty their way.2) The Nifty continues to trade in the congestion zone between its key EMAs and its key DMAs. However, this time the advantage is slightly favoring the Bulls, unless the Bears take a quick and swift action.3) The Stochastics are coming out of the oversold zone, and are now pointing upwards, again favoring the Bulls.4) In the above chart, the volumes remain on the lower side even in Friday's up gap opening and positive closing, indicating lack of participation. The MACD continues to go down, however the Histogram is showing some positive divergence. The ADX is indicating the weakening of any trend in the market, which points to a range-bound trading session ahead. Also the ADX is stopping short of indicating a fresh buy signal. The Parabolic SAR, continues its sell signal, but if the Nifty touches 5400 in today's session, then the signal would turn into a Buy signal, which must be noted.5) Considering the above, our trading plan for the day is as undera) Around 5380, we will open fresh short positions with a SL of 5400 and a target of 5310. We will add to these short positions only below 5300.b) Around 5310, we will open fresh long positions with a SL of 5300 and a target of 5380. We will add to these long positions only above 5405.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the Nifty stuck in congestion zone, beware of the whipsaw.
The expected selling did not emerge on Friday, although through out the session the Nifty, even after a good up gap opening, failed to cross 5340 emphatically. Today also, given the global cues, and the CRR cut announced by the RBI, the Nifty is likely to open with a positive gap. But once again, at higher levels, it is likely to meet with some fierce selling.
1) The Elder Ray readings : Bull Power rises from -88 to +10 Bear Power reduces from -160 to -41. This indicates that both the Bulls and the Bears are safe in their own territories, and both will have a big challenge on their hands, to drag the Nifty their way.
2) The Nifty continues to trade in the congestion zone between its key EMAs and its key DMAs. However, this time the advantage is slightly favoring the Bulls, unless the Bears take a quick and swift action.
3) The Stochastics are coming out of the oversold zone, and are now pointing upwards, again favoring the Bulls.
4) In the above chart, the volumes remain on the lower side even in Friday's up gap opening and positive closing, indicating lack of participation. The MACD continues to go down, however the Histogram is showing some positive divergence. The ADX is indicating the weakening of any trend in the market, which points to a range-bound trading session ahead. Also the ADX is stopping short of indicating a fresh buy signal. The Parabolic SAR, continues its sell signal, but if the Nifty touches 5400 in today's session, then the signal would turn into a Buy signal, which must be noted.
5) Considering the above, our trading plan for the day is as under
a) Around 5380, we will open fresh short positions with a SL of 5400 and a target of 5310. We will add to these short positions only below 5300.
b) Around 5310, we will open fresh long positions with a SL of 5300 and a target of 5380. We will add to these long positions only above 5405.
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.
