Amid weak global cues and bullish undertones, the Nifty likely to swing within a range.As discussed yesterday, there were to be no breakouts yet. The Nifty opened with a up gap of 21 points and closed with a meager gain of 10 points above that. It was however not able to scale the previous day's high by any reasonable measure. However, the undertones of a bullish trend are visible, as are always when a range bound market is at the top end of its trading range. However the global cues today are bleak. 1) The Elder Ray readings : Bull Power reduces from +75 to +66 Bear Power rises from +26 to +15 indicating that although the Bulls have lost some power, the Bears are still weak and were not able to push down Nifty that 15 points to regain their lost grounds. For today, the Bulls need to scale 5360 to retain their momentum whereas the Bears need to pull down the Nifty below 5285 to return back to safety.2) The Nifty is trading above its key EMAs but just below its 50 DMA at 5338. 3) The stochastics are just about to touch the overbought zone. In a range bound market, this is a good indicator of a top approaching.4) In the above chart, the volumes have depleted in yesterday's rise indicating that Bulls are lack of sustainability of the rise. The MACD is now rising and is supportive of a up move. The ADX continues to tell us that the market is still trend less and that the Bulls are weakening, but the Bears are weak too. The Bollinger Band is about to expand indicating higher volatility in coming sessions.5) Considering the above, our trading plan for the day is as undera) Around 5340, we will open fresh short positions with a SL of 5360 and a target of 5285. We will add to these short positions only below 5270.b) Around 5280, we will open fresh long positions with a SL of 5270 and a target of 5325. We will add to these long positions only above 5365. Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
Amid weak global cues and bullish undertones, the Nifty likely to swing within a range.
As discussed yesterday, there were to be no breakouts yet. The Nifty opened with a up gap of 21 points and closed with a meager gain of 10 points above that. It was however not able to scale the previous day's high by any reasonable measure. However, the undertones of a bullish trend are visible, as are always when a range bound market is at the top end of its trading range. However the global cues today are bleak.
1) The Elder Ray readings : Bull Power reduces from +75 to +66 Bear Power rises from +26 to +15 indicating that although the Bulls have lost some power, the Bears are still weak and were not able to push down Nifty that 15 points to regain their lost grounds. For today, the Bulls need to scale 5360 to retain their momentum whereas the Bears need to pull down the Nifty below 5285 to return back to safety.
2) The Nifty is trading above its key EMAs but just below its 50 DMA at 5338.
3) The stochastics are just about to touch the overbought zone. In a range bound market, this is a good indicator of a top approaching.
4) In the above chart, the volumes have depleted in yesterday's rise indicating that Bulls are lack of sustainability of the rise. The MACD is now rising and is supportive of a up move. The ADX continues to tell us that the market is still trend less and that the Bulls are weakening, but the Bears are weak too. The Bollinger Band is about to expand indicating higher volatility in coming sessions.
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 5360 and a target of 5285. We will add to these short positions only below 5270.
b) Around 5280, we will open fresh long positions with a SL of 5270 and a target of 5325. We will add to these long positions only above 5365.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With no follow up action on part of both the bulls and the bears, Nifty stays ranged.As discussed yesterday, the roadblocks ahead, made the Nifty to stumble and retreat. Pegging upon global cues and bolstered by the RBI action, the Nifty opened with a nice gap up of 30 points, and then stumbled at around 5340 as suggested by us, and retreated back to 5300. Today, the global cues are not so encouraging and we may see a flattish opening.1) The Elder Ray readings : Bull Power rises from +36 to +75 Bear Power reduces from -54 to +26 indicating that now the Bears need to come into action as they have lost valuable grounds. The Bulls seem to have carried out the tough task as of now. For today, the Bulls need to overcome 5350 to maintain their momentum, whereas the Bears need to breach 5270 to regain their lost grounds.2) The Nifty is trading above its key EMAs which are pointing upwards, but are stacked inversely. 3) The stochastics are still in the neutral region and are pointing upwards.4) In the above chart, the volumes have depleted in yesterday's rise on the Nifty indicating lack of followup action on part of the bulls. The MACD is still in the negative and is horizontal, however the MACD histogram has turned minor positive. The ADX is suggesting a trend less market with a bias towards the up move. The Parabolic SAR continues with its buy signal.5) Considering the above, our trading plan for the day is as under.a) Below 5315, we will open fresh short positions with a SL of 5345 and a target of 5270. We will add to these short positions only below 5240.b) Around 5275, we will open fresh long positions with a SL of 5250 and a target of 5315. We will add to these long positions only above 5350.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With no follow up action on part of both the bulls and the bears, Nifty stays ranged.
As discussed yesterday, the roadblocks ahead, made the Nifty to stumble and retreat. Pegging upon global cues and bolstered by the RBI action, the Nifty opened with a nice gap up of 30 points, and then stumbled at around 5340 as suggested by us, and retreated back to 5300. Today, the global cues are not so encouraging and we may see a flattish opening.
1) The Elder Ray readings : Bull Power rises from +36 to +75 Bear Power reduces from -54 to +26 indicating that now the Bears need to come into action as they have lost valuable grounds. The Bulls seem to have carried out the tough task as of now. For today, the Bulls need to overcome 5350 to maintain their momentum, whereas the Bears need to breach 5270 to regain their lost grounds.
2) The Nifty is trading above its key EMAs which are pointing upwards, but are stacked inversely.
3) The stochastics are still in the neutral region and are pointing upwards.
4) In the above chart, the volumes have depleted in yesterday's rise on the Nifty indicating lack of followup action on part of the bulls. The MACD is still in the negative and is horizontal, however the MACD histogram has turned minor positive. The ADX is suggesting a trend less market with a bias towards the up move. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5315, we will open fresh short positions with a SL of 5345 and a target of 5270. We will add to these short positions only below 5240.
b) Around 5275, we will open fresh long positions with a SL of 5250 and a target of 5315. We will add to these long positions only above 5350.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
After the RBI surprise yesterday, the Bulls may lead, but there are roadblocks ahead.As discussed yesterday, it was a tough task for the bulls, where in we saw the Nifty break day lows before managing to overcome the day high. In spite of the RBI surprising on the positive side, the Nifty managed a gain of just 63 points, when we have seen Nifty gaining more than 120 points on many occasions in the recent past. Today, on the back of global cues, the Bulls have got another shot in the arm and they can generate some momentum now.1) The Elder Ray readings : Bull Power rises from -24 to +36 Bear Power reduces from -74 to -54 indicating that the Bulls and the Bears are now equidistant and safe in their own zones, and this may increase the volatility. For today, the Bulls need to overcome 5310 to maintain their bullish momentum whereas the Bears need to drag the Nifty down to 5260 to remain safe in their zone.2) The Nifty is now trading above its key EMAs and its 100 and 200 DMAs. The 50 DMA at 5339 is a key level to watch out for. A close above that, will pump in great momentum for the Bulls.3) The stochastics is in the neutral zone and is pointing horizontal, indicating lack of direction.4) In the above chart, the volumes have increased with the rise in the Nifty, indicating a bullish surge. The MACD is still in the negative and is horizontal. The ADX is also suggesting that no clear trend exists, and is giving equal bias to both the Bulls and 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 5240 only.b) Around 5270, we will open fresh long positions with a SL of 5240 and a target of 5320. We will add to these long positions above 5355 only.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
After the RBI surprise yesterday, the Bulls may lead, but there are roadblocks ahead.
As discussed yesterday, it was a tough task for the bulls, where in we saw the Nifty break day lows before managing to overcome the day high. In spite of the RBI surprising on the positive side, the Nifty managed a gain of just 63 points, when we have seen Nifty gaining more than 120 points on many occasions in the recent past. Today, on the back of global cues, the Bulls have got another shot in the arm and they can generate some momentum now.
1) The Elder Ray readings : Bull Power rises from -24 to +36 Bear Power reduces from -74 to -54 indicating that the Bulls and the Bears are now equidistant and safe in their own zones, and this may increase the volatility. For today, the Bulls need to overcome 5310 to maintain their bullish momentum whereas the Bears need to drag the Nifty down to 5260 to remain safe in their zone.
2) The Nifty is now trading above its key EMAs and its 100 and 200 DMAs. The 50 DMA at 5339 is a key level to watch out for. A close above that, will pump in great momentum for the Bulls.
3) The stochastics is in the neutral zone and is pointing horizontal, indicating lack of direction.
4) In the above chart, the volumes have increased with the rise in the Nifty, indicating a bullish surge. The MACD is still in the negative and is horizontal. The ADX is also suggesting that no clear trend exists, and is giving equal bias to both the Bulls and 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 5240 only.
b) Around 5270, we will open fresh long positions with a SL of 5240 and a target of 5320. We will add to these long positions above 5355 only.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
With high expectations from the RBI monetary policy, it is a tough task ahead for Bulls.As discussed yesterday, the Nifty was nearing key supports, and a minor bounce back that was expected did happen. The Nifty closed with a minor gain of 19 points. Today, the RBI monetary policy announcement will be a major deciding factor for the next direction the Nifty takes on.1) The Elder Ray readings : Bull Power reduces from +44 to -24 Bear Power also reduces from -77 to -74 indicating that both the Bulls and the Bears are cautiously waiting and are wary of the next direction the market may take. For today, the Bulls need to overcome 5250 so as to return to their safe zone, whereas the Bears need to breach 5175 to maintain their negative momentum.2) The Nifty is trading well below its key EMAs and below its 50 DMA (5339). The 200 DMA ( 5144) and the 100 DMA (5095) may offer the much needed support to any drastic fall.3) The stochastics are in the neutral zone and are pointing downwards.4) In the above chart, the volumes have again dried up in yesterday's minor gain on the Nifty, indicating lack of force behind this rise. The MACD is in the negative and now it is threatening to fall away. The ADX is still indicating a direction less market and is still favoring the Bears. The Parabolic SAR continues to give out a Buy signal.5) Considering the above, our trading plan for the day is as under.a) Above 5215, we will open fresh long positions with a SL of 5195 and a target of 5270. We will add to these long positions above 5290 only.b) Around 5275, we will open fresh short positions with a SL of 5290 and a target of 5210. We will add to these short positions below 5180 only.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
With high expectations from the RBI monetary policy, it is a tough task ahead for Bulls.
As discussed yesterday, the Nifty was nearing key supports, and a minor bounce back that was expected did happen. The Nifty closed with a minor gain of 19 points. Today, the RBI monetary policy announcement will be a major deciding factor for the next direction the Nifty takes on.
1) The Elder Ray readings : Bull Power reduces from +44 to -24 Bear Power also reduces from -77 to -74 indicating that both the Bulls and the Bears are cautiously waiting and are wary of the next direction the market may take. For today, the Bulls need to overcome 5250 so as to return to their safe zone, whereas the Bears need to breach 5175 to maintain their negative momentum.
2) The Nifty is trading well below its key EMAs and below its 50 DMA (5339). The 200 DMA ( 5144) and the 100 DMA (5095) may offer the much needed support to any drastic fall.
3) The stochastics are in the neutral zone and are pointing downwards.
4) In the above chart, the volumes have again dried up in yesterday's minor gain on the Nifty, indicating lack of force behind this rise. The MACD is in the negative and now it is threatening to fall away. The ADX is still indicating a direction less market and is still favoring the Bears. The Parabolic SAR continues to give out a Buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Above 5215, we will open fresh long positions with a SL of 5195 and a target of 5270. We will add to these long positions above 5290 only.
b) Around 5275, we will open fresh short positions with a SL of 5290 and a target of 5210. We will add to these short positions below 5180 only.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As the Nifty test key support levels, a bounce back cannot be ruled out yet.As discussed in our last post, the expected high volatility unfolded and the Nifty after touching the falling trend line at 5306, retreated fast and furious to levels below 5200 and closed just above. Today, given the global cues, the Nifty is expected to open with a gap down, but as it is nearing key support levels, a bounce back can be expected.1) The Elder Ray readings : Bull Power rises from +19 to +44 Bear Power also rises from -25 to -77 indicating that the volatile whipsaw is likely to get even wilder and that the Nifty may swing wildly from now onwards.2) The Nifty is trading below its key EMAs now and also below its 50 DMA. However, the 200 DMA at 5145 could provide the much needed support.3) The stochastics are in the neutral zone and are pointing downwards now. 4) In the above chart, the volumes have increased while the Nifty fell, indicating increase in participation during this fall. The MACD is in the negative but is horizontal. The ADX is suggesting a trend less move with a slight bias towards the down move. The Parabolic SAR continues with its buy signal.5) Considering the above, our trading plan for the day is as under.a) Below 5235, we will open fresh short positions with a SL of 5255 and a target of 5155. We will add to these short positions below 5130.b) Around 5155, we will open fresh long positions with a SL of 5135 and a target of 5230. We will add to these long positions above 5255.Happy Trading !!! For cash market recommendations see our Daily Pre Market calls on NSE
As the Nifty test key support levels, a bounce back cannot be ruled out yet.
As discussed in our last post, the expected high volatility unfolded and the Nifty after touching the falling trend line at 5306, retreated fast and furious to levels below 5200 and closed just above. Today, given the global cues, the Nifty is expected to open with a gap down, but as it is nearing key support levels, a bounce back can be expected.
1) The Elder Ray readings : Bull Power rises from +19 to +44 Bear Power also rises from -25 to -77 indicating that the volatile whipsaw is likely to get even wilder and that the Nifty may swing wildly from now onwards.
2) The Nifty is trading below its key EMAs now and also below its 50 DMA. However, the 200 DMA at 5145 could provide the much needed support.
3) The stochastics are in the neutral zone and are pointing downwards now.
4) In the above chart, the volumes have increased while the Nifty fell, indicating increase in participation during this fall. The MACD is in the negative but is horizontal. The ADX is suggesting a trend less move with a slight bias towards the down move. The Parabolic SAR continues with its buy signal.
5) Considering the above, our trading plan for the day is as under.
a) Below 5235, we will open fresh short positions with a SL of 5255 and a target of 5155. We will add to these short positions below 5130.
b) Around 5155, we will open fresh long positions with a SL of 5135 and a target of 5230. We will add to these long positions above 5255.
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.
