Nifty - 23 Mar 2012 - Volatility to rise

As the volumes and the trading range broadens, expect volatility to rise now.

As discussed yesterday, the Bullish undertone, prevailed only for a few hours in the morning. However, when the Bulls were not able to breach 5390 and maintain their winning streak, the Bears took over and when 5335 got broken, the Bears swiftly took out 5245 and closed below 5230. Today, the Nifty is likely to open flattish, and then a bout of volatility could unleash, as both the Bulls and the Bears fight it out to gain control.

1) The Elder Ray readings : Bull Power increases from +32 to +62 Bear Power also increases from -84 to -118, indicating that the Bulls are still very much in the picture and cannot be counted out as yet, however the Bears are getting a bit stronger. For today, the Bears need to breach 5190 to maintain their momentum and the Bulls have a target of 5375. This wide ranged targets make us believe, that the volatility could be huge.

2) The Nifty is trading right between its key EMAs and its key DMAs making it vulnerable to get stretched in any direction. However, yesterday it has closed below its 50DMA after about 2 months, making it susceptible to continue downwards.

3) The stochastics are still in the neutral zone with the fast stochastics pointing downwards whereas the slow stochastics is lying flat.

4) In the above chart, the volumes have just slightly increased in yesterday's fall. The MACD continues to fall, but is still in the positive. The ADX is suggesting that a new trend could emerge soon. The Parabolic SAR continues with its sell signal.

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

a) Around 5195, we will open fresh long positions with a SL of 5165 and a target of 5275. We will add to these long positions above 5290.

b) Around 5275, we will open fresh short positions with a SL of 5290 and a target of 5200. We will add to these short positions below 5160.

Happy Trading !!! 

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

Nifty - 23 Mar 2012 - Volatility to rise

As the volumes and the trading range broadens, expect volatility to rise now.

As discussed yesterday, the Bullish undertone, prevailed only for a few hours in the morning. However, when the Bulls were not able to breach 5390 and maintain their winning streak, the Bears took over and when 5335 got broken, the Bears swiftly took out 5245 and closed below 5230. Today, the Nifty is likely to open flattish, and then a bout of volatility could unleash, as both the Bulls and the Bears fight it out to gain control.

1) The Elder Ray readings : Bull Power increases from +32 to +62 Bear Power also increases from -84 to -118, indicating that the Bulls are still very much in the picture and cannot be counted out as yet, however the Bears are getting a bit stronger. For today, the Bears need to breach 5190 to maintain their momentum and the Bulls have a target of 5375. This wide ranged targets make us believe, that the volatility could be huge.

2) The Nifty is trading right between its key EMAs and its key DMAs making it vulnerable to get stretched in any direction. However, yesterday it has closed below its 50DMA after about 2 months, making it susceptible to continue downwards.

3) The stochastics are still in the neutral zone with the fast stochastics pointing downwards whereas the slow stochastics is lying flat.

4) In the above chart, the volumes have just slightly increased in yesterday's fall. The MACD continues to fall, but is still in the positive. The ADX is suggesting that a new trend could emerge soon. The Parabolic SAR continues with its sell signal.

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

a) Around 5195, we will open fresh long positions with a SL of 5165 and a target of 5275. We will add to these long positions above 5290.

b) Around 5275, we will open fresh short positions with a SL of 5290 and a target of 5200. We will add to these short positions below 5160.

Happy Trading !!! 

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

Nifty - 22 Mar 2012 - Bullish undertone

Bullish undertone to continue till Nifty trades above 5335.

As discussed yesterday, the Nifty continued to search for direction in the morning. However, once the Bears failed to breach 5255 and the Bulls took out 5270 and 5325, there was a swift up-move with the Nifty closing at 5365. Two days ago we had also suggested that a bounce back was expected. Today, given the global cues, the Nifty is likely to open soft, but the bullish undertone will prevail till 5335 is breached.

1) The Elder Ray readings : Bull Power rises from -38 to +32 Bear Power reduces from -103 to -84, indicating that though the Bulls have regained their lost ground, one cannot count out the Bears as yet. Bulls will have to surpass 5390 to maintain their winning streak, whereas the Bears will have to breach 5245, which seems a difficult task as of today.

2) The Nifty is now trading above its key EMAs and its DMAs, confirming the bullish undertone.

3) The stochastics are in the neutral zone and are pointing upwards, again confirming the bullish sentiment.

Daily chart for Nifty as on 21 Mar 2012

4) In the above chart, the volumes have slightly increased in yesterday's rise on the Nifty. The MACD is still in the negative but is rising. The ADX is discarding any directional momentum in the market. The Parabolic SAR continues with its sell signal. All this suggests that the market is range-bound with a bullish undertone.

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 5400. We will add to these long positions above 5430.

b) Around 5415, we will open fresh short positions with a SL of 5430 and a target of 5360. We will add to these short positions only below 5310.

c) We will wait out patiently till the Nifty drifts to the extremes of either 5335 or 5415 before taking up positions as mentioned above. Till then we will ignore the Nifty.

Happy Trading !!! 

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

Nifty - 22 Mar 2012 - Bullish undertone

Bullish undertone to continue till Nifty trades above 5335.

As discussed yesterday, the Nifty continued to search for direction in the morning. However, once the Bears failed to breach 5255 and the Bulls took out 5270 and 5325, there was a swift up-move with the Nifty closing at 5365. Two days ago we had also suggested that a bounce back was expected. Today, given the global cues, the Nifty is likely to open soft, but the bullish undertone will prevail till 5335 is breached.

1) The Elder Ray readings : Bull Power rises from -38 to +32 Bear Power reduces from -103 to -84, indicating that though the Bulls have regained their lost ground, one cannot count out the Bears as yet. Bulls will have to surpass 5390 to maintain their winning streak, whereas the Bears will have to breach 5245, which seems a difficult task as of today.

2) The Nifty is now trading above its key EMAs and its DMAs, confirming the bullish undertone.

3) The stochastics are in the neutral zone and are pointing upwards, again confirming the bullish sentiment.

Daily chart for Nifty as on 21 Mar 2012

4) In the above chart, the volumes have slightly increased in yesterday's rise on the Nifty. The MACD is still in the negative but is rising. The ADX is discarding any directional momentum in the market. The Parabolic SAR continues with its sell signal. All this suggests that the market is range-bound with a bullish undertone.

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 5400. We will add to these long positions above 5430.

b) Around 5415, we will open fresh short positions with a SL of 5430 and a target of 5360. We will add to these short positions only below 5310.

c) We will wait out patiently till the Nifty drifts to the extremes of either 5335 or 5415 before taking up positions as mentioned above. Till then we will ignore the Nifty.

Happy Trading !!! 

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

Nifty - 21 Mar 2012 - Still searching direction

As the Nifty continues to trade in a narrow range, new direction to emerge soon.

As discussed yesterday, the expected bounce back came in twice during the trading session. Once at the beginning and then in the afternoon. However, both the bounces were quickly sold off as the Bears seemed to be still in good control over the Nifty. Today, the Nifty is likely to have a soft opening, but during the course of the day, the new direction of flow could emerge.

1) The Elder Ray readings : Bull Power reduces from -5 to -38 Bear Power also reduces from -107 to -103 indicating that the tug of war still continues. 5325 and 5210 are the prime levels that the Bulls and Bears need to breach respectively to gain momentum in their favor.

2) The Nifty continues to languish between its key EMAs and key DMAs. The 200 DMA is drifting down now.

3) The stochastics are in the neutral region and are pointing in opposite directions, confirming the absence of any trend in particular.

4) In the above chart, the volumes are keeping low indicating lack of participation along with lack of direction to the Nifty. The MACD continues to fall indicating bearish undertones to the market. The ADX is signalling a direction less market with a slight but diminishing bias to the Bears. The Parabolic SAR has turned into a sell signal.

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

a) Above 5270, we will open fresh long positions with a SL of 5255 and a target of 5310. We will add to these long positions above 5350.

b) Below 5270, we will open fresh short positions with a SL of 5290 and a target of 5230. We will add to these short positions below 5200.

c) Around 5310, we will be bearish with a SL of 5325 and a target of 5240.

d) Around 5230, we will be bullish with a SL of 5210 and a target of 5290

Happy Trading !!! 

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

Nifty - 21 Mar 2012 - Still searching direction

As the Nifty continues to trade in a narrow range, new direction to emerge soon.

As discussed yesterday, the expected bounce back came in twice during the trading session. Once at the beginning and then in the afternoon. However, both the bounces were quickly sold off as the Bears seemed to be still in good control over the Nifty. Today, the Nifty is likely to have a soft opening, but during the course of the day, the new direction of flow could emerge.

1) The Elder Ray readings : Bull Power reduces from -5 to -38 Bear Power also reduces from -107 to -103 indicating that the tug of war still continues. 5325 and 5210 are the prime levels that the Bulls and Bears need to breach respectively to gain momentum in their favor.

2) The Nifty continues to languish between its key EMAs and key DMAs. The 200 DMA is drifting down now.

3) The stochastics are in the neutral region and are pointing in opposite directions, confirming the absence of any trend in particular.

4) In the above chart, the volumes are keeping low indicating lack of participation along with lack of direction to the Nifty. The MACD continues to fall indicating bearish undertones to the market. The ADX is signalling a direction less market with a slight but diminishing bias to the Bears. The Parabolic SAR has turned into a sell signal.

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

a) Above 5270, we will open fresh long positions with a SL of 5255 and a target of 5310. We will add to these long positions above 5350.

b) Below 5270, we will open fresh short positions with a SL of 5290 and a target of 5230. We will add to these short positions below 5200.

c) Around 5310, we will be bearish with a SL of 5325 and a target of 5240.

d) Around 5230, we will be bullish with a SL of 5210 and a target of 5290

Happy Trading !!! 

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

Nifty - 20 Mar 2012 - Bounceback expected

With the Nifty trading at the lower end of its current range, bounce back is expected.

As discussed yesterday, the Nifty opened with a 20 point gap up, but lost the advantage soon, and then languished in a narrow trading range, to close at near the day's low. Today, the Nifty is likely to open flat to positive, and the tussle between Bulls and Bears is likely to be played out.

1) The Elder Ray readings : Bull Power reduces from +85 to -5 Bear Power rises from -56 to -107, indicating that the Bears are in full control as of now and that the Bulls are in their opponents territory. Bears will have to touch 5225 intraday, to maintain their momentum. Bulls need to touch 5335 to regain their lost territory. These could be the defining points for the Nifty today. 5280 can be set as a pivot point to take fresh positions.

2) The Nifty is trading right between its key EMAs and its key DMAs, indicating indecision in the market participants. The 200 DMA is at 5165 which could act as a key support.

3) The stochastics are right in the middle of the overbought and oversold zones and are pointing downwards, confirming the Bearish control over the Nifty.

4) In the above chart, the volumes have declined in yesterday's fall on the Nifty, indicating that a reversal might be coming up. However, the MACD is continuing to decline, the ADX is indicating gain of momentum in the downtrend. Both confirming the Bearish control over the Nifty. The Parabolic SAR is too close to the Nifty in its buy signal. This could turn into a Sell signal if Nifty touches 5225 intraday.

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

a) Above 5280, we will open fresh long positions with a SL of 5260 and a target of 5330. We will add to these long positions above 5345.

b) Below 5280, we will open fresh short positions with a SL of 5299 and a target of 5230. We will add to these short positions below 5220.

c) Around 5330, we will be bearish with a SL of 10 points and a target of 70 points.

d) Around 5230, we will be bullish with a SL of 10 points and a target of 70 points.

Happy Trading !!! 

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

Nifty - 20 Mar 2012 - Bounceback expected

With the Nifty trading at the lower end of its current range, bounce back is expected.

As discussed yesterday, the Nifty opened with a 20 point gap up, but lost the advantage soon, and then languished in a narrow trading range, to close at near the day's low. Today, the Nifty is likely to open flat to positive, and the tussle between Bulls and Bears is likely to be played out.

1) The Elder Ray readings : Bull Power reduces from +85 to -5 Bear Power rises from -56 to -107, indicating that the Bears are in full control as of now and that the Bulls are in their opponents territory. Bears will have to touch 5225 intraday, to maintain their momentum. Bulls need to touch 5335 to regain their lost territory. These could be the defining points for the Nifty today. 5280 can be set as a pivot point to take fresh positions.

2) The Nifty is trading right between its key EMAs and its key DMAs, indicating indecision in the market participants. The 200 DMA is at 5165 which could act as a key support.

3) The stochastics are right in the middle of the overbought and oversold zones and are pointing downwards, confirming the Bearish control over the Nifty.

4) In the above chart, the volumes have declined in yesterday's fall on the Nifty, indicating that a reversal might be coming up. However, the MACD is continuing to decline, the ADX is indicating gain of momentum in the downtrend. Both confirming the Bearish control over the Nifty. The Parabolic SAR is too close to the Nifty in its buy signal. This could turn into a Sell signal if Nifty touches 5225 intraday.

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

a) Above 5280, we will open fresh long positions with a SL of 5260 and a target of 5330. We will add to these long positions above 5345.

b) Below 5280, we will open fresh short positions with a SL of 5299 and a target of 5230. We will add to these short positions below 5220.

c) Around 5330, we will be bearish with a SL of 10 points and a target of 70 points.

d) Around 5230, we will be bullish with a SL of 10 points and a target of 70 points.

Happy Trading !!! 

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

Nifty - 19 Mar 2012 - Narrow ranged Nifty

As the Nifty approaches key supports, the downfall may get arrested.

On Friday, we had suggested about the Budget day blues, and the Nifty retraced back twice from our suggested levels of 5435 to give a fall of 80 points, before closing near the day lows. Today, the Nifty is likely to open flat and trade both ways within a confined range.

1) The Elder Ray readings : Bull Power reduces from +95 to +85 Bear Power increases from -6 to -56 indicating of the possible tug of war between the Bulls and the Bears with neither ready to give up any ground.

2) The Nifty is trading right between its key EMAs and its key DMAs. The EMAs are pointing downwards now.

3) The stochastics are out of the overbought zone and are pointing downwards, indicating acceleration of the downtrend.

4) In the above chart, the volumes have increased in the last trading session with the Nifty staging a fall, indicating that the fall may continue. The MACD has resumed its fall. The ADX is suggesting a trend less market, with both the Bulls and the Bears equally placed. The Parabolic SAR is holding onto its buy signal. However, this would turn into a sell signal only if the Nifty breaches 5240.

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

a) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5280. We will add to these short positions only below 5240.

b) Around 5275, we will open fresh long positions with a SL of 5255 and a target of 5340. We will add to these long positions only above 5385.

Happy Trading !!!


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

Nifty - 19 Mar 2012 - Narrow ranged Nifty

As the Nifty approaches key supports, the downfall may get arrested.

On Friday, we had suggested about the Budget day blues, and the Nifty retraced back twice from our suggested levels of 5435 to give a fall of 80 points, before closing near the day lows. Today, the Nifty is likely to open flat and trade both ways within a confined range.

1) The Elder Ray readings : Bull Power reduces from +95 to +85 Bear Power increases from -6 to -56 indicating of the possible tug of war between the Bulls and the Bears with neither ready to give up any ground.

2) The Nifty is trading right between its key EMAs and its key DMAs. The EMAs are pointing downwards now.

3) The stochastics are out of the overbought zone and are pointing downwards, indicating acceleration of the downtrend.

4) In the above chart, the volumes have increased in the last trading session with the Nifty staging a fall, indicating that the fall may continue. The MACD has resumed its fall. The ADX is suggesting a trend less market, with both the Bulls and the Bears equally placed. The Parabolic SAR is holding onto its buy signal. However, this would turn into a sell signal only if the Nifty breaches 5240.

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

a) Around 5360, we will open fresh short positions with a SL of 5375 and a target of 5280. We will add to these short positions only below 5240.

b) Around 5275, we will open fresh long positions with a SL of 5255 and a target of 5340. We will add to these long positions only above 5385.

Happy Trading !!!


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