As a volatile week comes to an end, expect volatility to rise further.Yesterday, we had suggested that Nifty is still range bound, and we saw the Nifty moving up and down within a narrow range of 44 points. Of course, we did not have a profitable day, as the Nifty never broke below its opening mark, however, it did not hit our stop loss either. We had to book a small loss of 10 points at the end of the day. Today, with global cues favoring the Bulls, the Nifty is likely to open positive with a gap up. However, major resistances to this up move can play a road block.1) The Elder Ray readings : Bull Power rises from -7 to +19 Bear Power reduces from -80 to -25, indicating that both the Bulls and the Bears are now equidistant from the zero line and both are well within their own territory, this gives rise to possibility of volatile session / sessions ahead. For today, the Bulls need to cross over 5295 and the Bears need to breach 5270 to maintain their momentum.2) The Nifty is trading above its 8 and 13 EMAs however it is below its 21 EMA. The 50 DMA at 5340 could act as a resistance to any up move.3) The stochastics are in the neutral zone and are pointing upwards now.4) In the above chart, the volumes are almost on par with a narrow trading range for the Nifty, indicating equilibrium between the Bulls and the Bears. The MACD is still in the negative and is horizontal, again indicating equilibrium. The ADX is still indicating a trend less market with a slight but declining bias towards the Bears. The Parabolic SAR continues with its buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5340, we will open fresh short positions with a SL of 5355 and a target of 5275. We will add to these short positions below 5255.b) Around 5265, we will open fresh long positions with a SL of 5255 and a target of 5325. We will add to these long positions only above 5355. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As a volatile week comes to an end, expect volatility to rise further.
Yesterday, we had suggested that Nifty is still range bound, and we saw the Nifty moving up and down within a narrow range of 44 points. Of course, we did not have a profitable day, as the Nifty never broke below its opening mark, however, it did not hit our stop loss either. We had to book a small loss of 10 points at the end of the day. Today, with global cues favoring the Bulls, the Nifty is likely to open positive with a gap up. However, major resistances to this up move can play a road block.
1) The Elder Ray readings : Bull Power rises from -7 to +19 Bear Power reduces from -80 to -25, indicating that both the Bulls and the Bears are now equidistant from the zero line and both are well within their own territory, this gives rise to possibility of volatile session / sessions ahead. For today, the Bulls need to cross over 5295 and the Bears need to breach 5270 to maintain their momentum.
2) The Nifty is trading above its 8 and 13 EMAs however it is below its 21 EMA. The 50 DMA at 5340 could act as a resistance to any up move.
3) The stochastics are in the neutral zone and are pointing upwards now.
4) In the above chart, the volumes are almost on par with a narrow trading range for the Nifty, indicating equilibrium between the Bulls and the Bears. The MACD is still in the negative and is horizontal, again indicating equilibrium. The ADX is still indicating a trend less market with a slight but declining bias towards the Bears. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5340, we will open fresh short positions with a SL of 5355 and a target of 5275. We will add to these short positions below 5255.
b) Around 5265, we will open fresh long positions with a SL of 5255 and a target of 5325. We will add to these long positions only above 5355.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
After taking support again in the 5200 zone, the Nifty remains range bound.As discussed yesterday, the Bearish mood on the Nifty continued during the morning trade. The smart recovery in the afternoon got swept away by the Tsunami of bears and the Nifty closed in the red losing 17 points. Today, the Nifty is likely to open flat and swing wildly within its current trading range.1) The Elder Ray readings : Bull Power rises from -22 to -7 Bear Power also rises from -66 to -80, indicating that there is tussle for power going on and the bears have a slight advantage over the bulls. For today, the Bulls need to cross 5265 to regain their lost territory whereas the Bears need to breach 5185 to maintain their momentum. These two levels could be the range boundaries for today.2) The Nifty continues to trade below its key EMAs, which are pointing downwards now. It also continues to trade well below its 50 DMA which is at 5335. 3) The stochastics remain in the neutral zone and continue to point downwards.4) In the above chart, the volumes have slightly increased indicating increase in participation of the traders on the Nifty. The MACD continues in the red and continues to point flat. The ADX is also suggesting lack of any strong trend but is favoring the down move as of now. The Parabolic SAR continues to hold out a buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5270, we will open fresh short positions with a SL of 5300 and a target of 5190. We will add to these short positions below 5160.b) Around 5180, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions above 5300.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
After taking support again in the 5200 zone, the Nifty remains range bound.
As discussed yesterday, the Bearish mood on the Nifty continued during the morning trade. The smart recovery in the afternoon got swept away by the Tsunami of bears and the Nifty closed in the red losing 17 points. Today, the Nifty is likely to open flat and swing wildly within its current trading range.
1) The Elder Ray readings : Bull Power rises from -22 to -7 Bear Power also rises from -66 to -80, indicating that there is tussle for power going on and the bears have a slight advantage over the bulls. For today, the Bulls need to cross 5265 to regain their lost territory whereas the Bears need to breach 5185 to maintain their momentum. These two levels could be the range boundaries for today.
2) The Nifty continues to trade below its key EMAs, which are pointing downwards now. It also continues to trade well below its 50 DMA which is at 5335.
3) The stochastics remain in the neutral zone and continue to point downwards.
4) In the above chart, the volumes have slightly increased indicating increase in participation of the traders on the Nifty. The MACD continues in the red and continues to point flat. The ADX is also suggesting lack of any strong trend but is favoring the down move as of now. The Parabolic SAR continues to hold out a buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5270, we will open fresh short positions with a SL of 5300 and a target of 5190. We will add to these short positions below 5160.
b) Around 5180, we will open fresh long positions with a SL of 5165 and a target of 5255. We will add to these long positions above 5300.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
It could be the start of a great fall on the Nifty. Watch out for 5080 levels.On 30th March 2012, right at the start of the current series, we had suspected that bears are gaining momentum, and had said it in our post "Bears on the prowl". Even yesterday, we had said "Selling continues", and that is what is likely to unfold in days to come. Given the global cues, the Nifty is likely to open with a huge gap down, and stay down.1) The Elder Ray readings : Bull Power reduces from +4 to -22 Bear Power increases from -56 to -66, indicating that the Bulls have now again lost their territory after a gap of 5 days, and the Bears are now languishing in their safe zone. For today, the Bulls need to cross over 5280 to regain their zone, whereas the Bears need to breach 5200 to maintain their momentum.2) The Nifty is trading below its key EMAs and below its 50 DMA. The 200 DMA at 5146 and the 100 DMA at 5080 could offer support.3) The stochastics are in the neutral zone and are pointing downwards.4) In the above chart, the volumes have increased in yesterday's trade indicating increase in the participation. The MACD is still in the negative, and is threatening to go down. The ADX is suggesting absence of any strong trend, but is biased towards a down move. The Parabolic SAR continues with its buy signal, however, the gap is reducing, and any major gap down can turn this signal into a sell signal.5) Considering the above, our trading plan is as under.a) Below 5235, we will open fresh short positions with a SL of 5255 and a target of 5180. We will add to these short positions only below 5140.b) Above 5240, we will open fresh long positions with a SL of 5210 and a target of 5280. We will add to these long positions only above 5315.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
It could be the start of a great fall on the Nifty. Watch out for 5080 levels.
On 30th March 2012, right at the start of the current series, we had suspected that bears are gaining momentum, and had said it in our post "Bears on the prowl". Even yesterday, we had said "Selling continues", and that is what is likely to unfold in days to come. Given the global cues, the Nifty is likely to open with a huge gap down, and stay down.
1) The Elder Ray readings : Bull Power reduces from +4 to -22 Bear Power increases from -56 to -66, indicating that the Bulls have now again lost their territory after a gap of 5 days, and the Bears are now languishing in their safe zone. For today, the Bulls need to cross over 5280 to regain their zone, whereas the Bears need to breach 5200 to maintain their momentum.
2) The Nifty is trading below its key EMAs and below its 50 DMA. The 200 DMA at 5146 and the 100 DMA at 5080 could offer support.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have increased in yesterday's trade indicating increase in the participation. The MACD is still in the negative, and is threatening to go down. The ADX is suggesting absence of any strong trend, but is biased towards a down move. The Parabolic SAR continues with its buy signal, however, the gap is reducing, and any major gap down can turn this signal into a sell signal.
5) Considering the above, our trading plan is as under.
a) Below 5235, we will open fresh short positions with a SL of 5255 and a target of 5180. We will add to these short positions only below 5140.
b) Above 5240, we will open fresh long positions with a SL of 5210 and a target of 5280. We will add to these long positions only above 5315.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
The downtrend may continue for a while, as the Nifty gets bearish mood.As discussed yesterday, we were sensing undercurrents of a big move, and the direction of that move became clear when the Nifty opened gap down. The late evening effort for recovery, gave us yet another opportunity to go short and book one more round of profit by the end of the session. Today, the Nifty will still be under some selling pressure, but may find good support around 5200 5160.1) The Elder Ray readings : Bull Power reduces from +47 to +4 Bear Power increases from +13 to -56 indicating that the Bears have now regained all of their lost territory and have gained some momentum also. The Bulls are still safe in their territory, however, their task has become that much more difficult. For today, the Bulls need to cross over 5285 to retain their territory whereas the Bears need to breach 5210 to maintain their momentum.2) The Nifty is now trading below its key EMAs and below its 50 DMA. However the 200 DMA at 5163 may offer good support, and may stall the downtrend.3) The stochastics are in the neutral zone and are pointing downwards, indicating that there is some more room for a further fall on the Nifty.4) In the above chart, the volumes have yet again depleted, indicating lack of interest and lack of sustainability of the current fall. The MACD is still in the negative and is flat, indicating continuation of the current negative trend. The ADX is still suggesting absence of any strong trend but is showing a bias towards a down move. The Parabolic SAR is continuing with its buy signal.5) Considering the above, our trading plan for the day is as under.a) Around 5255, we will open fresh short positions with a SL of 5270 and a target of 5200. We will add to these shorts only below 5160.b) Around 5190, we will open fresh long positions with a SL of 5170 and a target of 5255. We will add to these long positions only above 5285.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
The downtrend may continue for a while, as the Nifty gets bearish mood.
As discussed yesterday, we were sensing undercurrents of a big move, and the direction of that move became clear when the Nifty opened gap down. The late evening effort for recovery, gave us yet another opportunity to go short and book one more round of profit by the end of the session. Today, the Nifty will still be under some selling pressure, but may find good support around 5200 5160.
1) The Elder Ray readings : Bull Power reduces from +47 to +4 Bear Power increases from +13 to -56 indicating that the Bears have now regained all of their lost territory and have gained some momentum also. The Bulls are still safe in their territory, however, their task has become that much more difficult. For today, the Bulls need to cross over 5285 to retain their territory whereas the Bears need to breach 5210 to maintain their momentum.
2) The Nifty is now trading below its key EMAs and below its 50 DMA. However the 200 DMA at 5163 may offer good support, and may stall the downtrend.
3) The stochastics are in the neutral zone and are pointing downwards, indicating that there is some more room for a further fall on the Nifty.
4) In the above chart, the volumes have yet again depleted, indicating lack of interest and lack of sustainability of the current fall. The MACD is still in the negative and is flat, indicating continuation of the current negative trend. The ADX is still suggesting absence of any strong trend but is showing a bias towards a down move. The Parabolic SAR is continuing with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Around 5255, we will open fresh short positions with a SL of 5270 and a target of 5200. We will add to these shorts only below 5160.
b) Around 5190, we will open fresh long positions with a SL of 5170 and a target of 5255. We will add to these long positions only above 5285.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With the lull over the past week behind us now, the Nifty is poised for a big move.As discussed in our last post, the lull continued on the Nifty, and the Nifty drifted listlessly within a 35 point range and ended up going nowhere. Today, the Nifty is likely to open with a small negative bias, and most likely would find a new short term trend within a couple of sessions from now.1) The Elder Ray readings : Bull Power reduces from +92 to +47 Bear Power increases from +58 to +13, indicating that the struggle for direction still continues. For today, the Bulls need to cross 5345 to get momentum going towards them, whereas the Bears need to breach below 5290 to set the momentum towards a downfall.2) The Nifty is trading above its key EMAs and key DMAs, however it is just below its 50DMA which is at 5330.3) The stochastics are in the neutral zone and are pointing downwards, indicating that the Bears may get stronger.4) In the above chart, the volumes have gone down significantly, while the Nifty has been almost stagnant, indicating lack of participation along with lack of direction. The MACD is now in the negative and is showing some signs of rising. The ADX is suggesting a trend less market with a slight bias towards the Bears. The Parabolic SAR continues with its buy signal.5) Considering the above, our trading plan for the day is as undera) Below 5305, we will open fresh short positions with a SL of 5325 and a target of 5255. We will add to these short positions only below 5230.b) Above 5345, we will open fresh long positions with a SL of 5325 and a target of 5395. We will add to these long positions only above 5410.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With the lull over the past week behind us now, the Nifty is poised for a big move.
As discussed in our last post, the lull continued on the Nifty, and the Nifty drifted listlessly within a 35 point range and ended up going nowhere. Today, the Nifty is likely to open with a small negative bias, and most likely would find a new short term trend within a couple of sessions from now.
1) The Elder Ray readings : Bull Power reduces from +92 to +47 Bear Power increases from +58 to +13, indicating that the struggle for direction still continues. For today, the Bulls need to cross 5345 to get momentum going towards them, whereas the Bears need to breach below 5290 to set the momentum towards a downfall.
2) The Nifty is trading above its key EMAs and key DMAs, however it is just below its 50DMA which is at 5330.
3) The stochastics are in the neutral zone and are pointing downwards, indicating that the Bears may get stronger.
4) In the above chart, the volumes have gone down significantly, while the Nifty has been almost stagnant, indicating lack of participation along with lack of direction. The MACD is now in the negative and is showing some signs of rising. The ADX is suggesting a trend less market with a slight bias towards the Bears. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under
a) Below 5305, we will open fresh short positions with a SL of 5325 and a target of 5255. We will add to these short positions only below 5230.
b) Above 5345, we will open fresh long positions with a SL of 5325 and a target of 5395. We will add to these long positions only above 5410.
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.
